Home > The Economy > The inflation / deflation chart for selected economies

The inflation / deflation chart for selected economies

from David Ruccio


As the Economist explains,

Inflation rates around the world have been sinking over the last three years. Pervasive economic weakness in the rich world and a slowdown in Chinese growth drove the initial decline. Lately tumbling oil prices have helped to push inflation into negative territory across much of the euro area. America, Britain and China, where inflation rates have dropped below 1%, may soon join Europe in deflation. Falling prices for things like petrol have been “unambiguously good” for consumers, in the words of Mark Carney, the governor of the Bank of England. But broad and persistent deflation is not a healthy thing for a modern economy. It will make big debts harder for households and governments to repay, and it could hinder central banks looking to perk up slumping economies

  1. February 28, 2015 at 7:59 am
  2. February 28, 2015 at 12:56 pm

    It is good that the inflation rate is low but it falling to below 0 is a different story. The US is now on the brink of deflation, if in 2015 its economy does not prove any resilient then we have 4 out of the world’s 7 largest economy falling into deflation. And it is possible due to a recent freefall of oil price.

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