Deflation is real and it’s spreading | money blog

So far Spain, Ireland and the UK are already seeing it and Japan is teetering on the brink.

“Ireland, struggling with a ballooning budget deficit and record unemployment, has been at the vanguard of Europe’s economic collapse. Now deflation threatens to push the country deeper into its worst recession in eight decades.” (Bloomberg)

“Britain’s statistics office says the country’s retail price index is falling for the first time in nearly fifty years.” (FoxNews)

“VALENCIA, Spain — Faced with plunging orders, merchants across this recession-wracked country are starting to do something that many of them have never done: cut retail prices.” (NYTimes)

“Japan starts with significantly greater deflation risks” than the U.S. or Europe.” (IMF report via Wall Street Journal)

Deflation is real and it’s spreading | money blog

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