Tag Archive: economic deflation

IS DEFLATION A RISK?

With all the recent talk of the possibility of inflation bottoming in the U.S., we felt it prudent to discuss the other side of the coin a bit. Deflation is a decline in the general price levels of goods and services. An economy is said to be experiencing deflation when the inflation rate falls below zero percent. A CPI reading of -.1 percent, for example, would indicate that prices have dropped as much. The U.K. has just apparently entered deflation with year-over-year consumer prices falling... Continue Reading