With oil prices continuing to sag and the CPI at a 2-year low, there is a distinct possibility we are already seeing deflationary forces becoming influential.
The tell will be if prices stabilize or if they keep on falling.
With oil prices continuing to sag and the CPI at a 2-year low, there is a distinct possibility we are already seeing deflationary forces becoming influential.
The tell will be if prices stabilize or if they keep on falling.
I just came from the grocery store, and prices are still climbing on certain benchmark products I keep track of. There’s something of a lag between wholesale prices and the retail prices, so I will watch to see if prices start to fall next week and next month. I’m wondering if there is a reliable correlation between how *fast* prices drop and how *far* they will drop. I suppose not. We haven’t had real deflation since the 1930s, so who knows the pattern of unraveling. It will be interesting to see how people react, though.
With oil prices continuing to sag and the CPI at a 2-year low, there is a distinct possibility we are already seeing deflationary forces becoming influential.
The tell will be if prices stabilize or if they keep on falling.
I just came from the grocery store, and prices are still climbing on certain benchmark products I keep track of. There’s something of a lag between wholesale prices and the retail prices, so I will watch to see if prices start to fall next week and next month. I’m wondering if there is a reliable correlation between how *fast* prices drop and how *far* they will drop. I suppose not. We haven’t had real deflation since the 1930s, so who knows the pattern of unraveling. It will be interesting to see how people react, though.