Published Date:
22 April 2009
By George Kerevan
INFLATION, as measured by the Retail Prices Index (RPI), went negative in March for the first time since 1960. Admittedly, the annualised drop is a miniscule 0.4 per cent, but that is still means the average price level was lower than a year previously. Does this herald deflation and should we be worried?
The phenomenon is catching. US consumer prices were also 0.4 per cent lower last month compared with March 2008, the first year-on-year drop in America since August 1955.
My gut reaction is not to panic and that this is a temporary situation. For ...
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Last Updated:
21 April 2009 8:32 PM
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Source:
The Scotsman
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Location:
Edinburgh
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Related Topics:
George Kerevan
