*The global eco**my has started 2015 on the wrong foot. The sharp decline in oil prices pushed the euro zone into deflation in December 2014 and resulted in a significant slowdown in inflation in Japan, the UK and the US. More worrisome, there is growing evidence that these disinflationary pressures are affecting wages and, to a lesser extent, asset prices. Going forward, unless this disinflationary spiral is stopped, the world eco**my is likely to enter a prolonged period of deflation, what**w, the reality of global deflation is upon us.
01-25-2015, 07:32 PM
Falling oil prices push euro zone into deflation
*The global eco**my has started 2015 on the wrong foot. The sharp decline in oil prices pushed the euro zone into deflation in December 2014 and resulted in a significant slowdown in inflation in Japan, the UK and the US. More worrisome, there is growing evidence that these disinflationary pressures are affecting wages and, to a lesser extent, asset prices. Going forward, unless this disinflationary spiral is stopped, the world eco**my is likely to enter a prolonged period of deflation, what**w, the reality of global deflation is upon us.
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