Economists: All Signs Point to Deflation
by Christina Lee on November 19th, 2008
Consumer prices dropped in October by 1.0 percent – the largest decline ever measured by the Bureau of Labor Statistics, and a sure sign to economists that prices are deflating. Economists also noted as another indicator yesterday’s recorded 2.8 percent decline in wholesale prices – the biggest decline measured since over the past year. While consumer prices are still 3.7 percent higher than they were in October 2007, experts still fear that overall business in the nation will suffer, as consumers actively seek lower prices in goods and services. As About.com writer Darrell Zahorsky wrote , deflation is “great news... Read more »