Global deflation risk grows

October saw one of only seven monthly drops in the core Consumer Price Index since 1947

Global concern about inflation, which was widespread just a few months ago, has given way to worries about an opposite and potentially more dangerous problem: deflation. Full Story »

Posted by Dan Kennedy
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Posted by: Posted by Dan Kennedy - Nov 19, 2008 - 6:41 PM PST
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Edited by: Dan Kennedy - Nov 19, 2008 - 6:41 PM PST

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3.5
by Dan Kennedy - Nov. 19, 2008

Solid, workmanlike story that shows why falling prices, far from being a good development, could actually lead to a dangerous deflationary spiral.

See Full Review » (8 answers)
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3.6
by Derek Hawkins - Nov. 20, 2008

This is a lucid, plain-terms explanation of how widespread deflation could hurt consumers. The story would have been made richer if the reporter had left his desk to go find an example of where this is happening already -- it seems even retail store cutting prices for holiday shopping would have worked fine.

See Full Review » (11 answers)
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3.7
by Kristin Gorski - Nov. 19, 2008

The reporter does an effective job of explaining deflation and why the current drop in the Consumer Price Index matters.

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4.0
by Jack Dinkmeyer - Nov. 20, 2008

Really an informative primer about another disturbing aspect of the ever deepening recession. What got my attention was the phrase: "Consumer Price Index (CPI) took a rare nose dive, plunging by 1 percent in October, the Labor Department said Wednesday. That's the largest fall in a single month since 1938. "

The article finished with assurances that the global deflation is temporary and would probably be over by 2010. But given the state of the global ... More »

See Full Review » (12 answers)
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3.6
by Paul-André Raymond - Nov. 20, 2008
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4.1
by Joel Kulenkamp - Nov. 20, 2008
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5.0
by William Hughes-Games - Nov. 24, 2008

The story clearly shows the accepted wisdom that economic growth is good, deflation bad and shows how hard everyone is working to get us back into growth mode.

Defation, as painful as it may be, lowers our footprint on the planet. The deflation we are experiencing and will experience, even if we match the ... More »

See Full Review » (7 answers)
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3.5
by Kenneth Sibbett - Nov. 20, 2008

Good journalism with one point of view

While deflation may be a problem in theshort term, I believe market correction will fix this problem. With people selling and flipping houses at two ... More »

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5.0
by Austin Fergusson - Nov. 20, 2008
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  • Falling Prices Raise a New Fear: Deflation

    This week's news of a drop in consumer prices may sound on the surface like a good deal for financially strapped U.S. households. But economists warn that sustained deflation ...
    Posted by Derek Hawkins
    3.8