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Continuous inflation or deflation left unchecked can wound the economy. While deflation can drive down prices, which is good, profits and wages may also suffer and repaying debt becomes expensive.
There are still some pockets of deflation in the U.S. economy, though the dynamic has become more muted as supply chains normalize, economists said.
What is deflation? That being said, it's unlikely that deflation will become widespread. And if it does, that won't be good sign for the economy, Harrison added.
Big supermarket chains may be unlikely winners from deflation. Walmart and Tesco are expecting prices to fall in 2024 as they pile pressure on suppliers like Unilever . Even more competition will ...
Inflation has cooled significantly recently, but you may still find yourself paying more at the grocery store. What gives? Here's a primer on what easing inflation actually means.
The Chinese economy has slipped into deflation, with consumer prices falling for the first time in more than two years in another sign of weakening demand.
well, deflation is now in place for October through December. The graph remains down and to the right, following the same trend line as I wrote about here, you can see the new graph for yourself: ...
After encountering rapid price increases for more than two years, discounts at some stores would certainly feel like a much-needed respite.
The second graph, in which the slope of the line actually becomes negative, illustrates a period of deflation. During disinflation, CPI continues to rise, albeit at a slower rate than before.
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