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- CNBC Deflation is a decrease in the general price level of goods and services. It is the opposite of inflation, which is an increase in the general price level. Deflation occurs when the inflation rate falls below 0 percent. The most extreme form of deflation is a prolonged period of falling prices, called a deflationary spiral. This occurs when the deflationary forces become so strong that they cause a continuing fall in prices, leading to a decrease in demand, which leads to even lower prices and so on. This can be very damaging to an economy, as it reduces economic activity, leading to job losses and even a recession. Deflation can be caused by a decrease in the money supply, a decrease in government spending, or a decrease in aggregate demand. The most famous example of deflation was the Great Depression of the 1930s.
In August, in September, and in October this year, real pay for manufacturing workers (excluding managers and supervisors) rose more than 3% year-on-year. That’s the first three-month, 3% + rise in more than 15 years, dating back to the deflationary days of 2009. Excluding the real pay-boosting effects of deflation, the previous point in history…
In an unexpected shift, Colombia’s Consumer Price Index (CPI) rose to 0.27% in November, marking a robust rebound from October’s deflationary figure of -0.13%. This month’s update, released on December 6, 2024, indicates a notable reversal in the country’s month-over-month inflation dynamics.In October, Colombia experienced a rare deflationary period, with prices dropping by 0.13% compared […]
China's CPI decelerated from 0.3% yoy to 0.2% yoy in November, below market expectations of 0.5% yoy, and marking its lowest level in five months. Persistent deflationary pressures highlight the urgency for stronger fiscal measures to reinvigorate the economy.
Switzerland's Producer Price Index (PPI) has experienced another decrease, dropping to -0.6% in November 2024, according to the latest data updated on December 16, 2024. This marks a further decline from the previous month's PPI, which stood at -0.3% in October 2024. The continued decrease suggests an ongoing trend of reduced industrial production costs in the country.The PPI measures changes in the selling prices received by domestic producers for their output, and a decline indicates that manufacturers are receiving lower prices for their goods. This month-over-month comparison reveals a more significant reduction compared to the previous month-over-month change, raising concerns about potential deflationary pressures within the Swiss economy.As the PPI continues to drop, economists and industry stakeholders will be closely monitoring these trends and assessing their potential impacts on broader economic objectives, including inflation targets and production strategies. The latest decline could influence future monetary policy decisions and highlight the need for strategic economic interventions to stabilize producer prices in Switzerland.The material has been provided by InstaForex Company - www.instaforex.com
Switzerland's Producer Price Index (PPI) exhibited signs of recovery in November 2024, with the current indicator ceasing its decline at -1.5% year-over-year, as per the updated data released on December 16, 2024. This represents an improvement from the previous month's figure, which was recorded at -1.8% in October 2024.The PPI is a critical measure of wholesale inflation, as it indicates changes in the prices manufacturers receive for their goods. A reduction in the negative trajectory of the PPI suggests a deceleration in producer price deflation, hinting at stabilizing conditions in the Swiss economy.The year-over-year analysis provides insights into price trends by comparing the current month's performance to the same period from the prior year. This comparison underscores November 2024's more favorable position relative to October 2024, offering a glimmer of potential economic upturn for Switzerland's producers as they move towards the year's end. Economists and industry experts will be closely monitoring upcoming indicators for further evidence of economic resilience.The material has been provided by InstaForex Company - www.instaforex.com