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Discover Latest #Deflation News, Articles and Videos with Contenting
- 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.
China exports accelerate amid trade tensions, imports surprise
BEIJING (Reuters) -China's exports gained momentum in December, with imports also showing recovery, though strength at the year-end was in part fuelled by factories rushing inventory overseas as they braced for heightened trade risks under a Trump presidency. U.S. President-elect Donald Trump, set to return to the White House next week, has proposed hefty tariffs on Chinese goods, sparking fears of a renewed trade war between the two superpowers. Adding to the challenges, unresolved disputes with the European Union over tariffs of up to 45.3% on Chinese electric vehicles threaten to hinder China's ambitions to expand its auto exports and help address deflationary overcapacity concerns.
Switzerland's PPI Shows Signs of Recovery in December Data - ForexTV
Switzerland's Producer Price Index (PPI) showed signs of improvement in December 2024, as revealed by the latest data update on January 20, 2025. The PPI, which measures the average change over time in the selling prices received by domestic producers for their output, improved to -0.9% in December, up from -1.5% in November.This year-over-year comparison indicates a gradual easing of producer price deflation. The improvement suggests potential stabilization in the Swiss economy's production sectors, although the index remains in negative territory. A year ago, in December, the PPI was still relatively stronger, showcasing the ongoing challenge for Swiss producers to navigate a volatile economic landscape exacerbated by external global pressures.Market analysts are closely monitoring these indicators as they are essential for assessing inflationary pressures within the Swiss economy. The shift in PPI could forecast future adjustments in consumer prices and, consequently, influence monetary policy decisions by the Swiss National Bank in the coming months.As producers grapple with external and domestic economic factors, the eased decline in December's PPI presents a cautiously optimistic outlook for the beginning of 2025. However, it also underscores the need for continued resilience in addressing potential economic headwinds.The material has been provided by InstaForex Company - www.instaforex.com
How the media are missing the point on deflation - Talking Biz News
Dean Baker of the Center for Economic and Policy Research writes about how the business media is misinterpreting the impact of deflation on the economy. Baker writes, “This simple point often eludes people who write about the economy, as was the case with this Washington Post editorial on China’s economic problems. The piece correctly noted that China’s official […]
French Harmonized Index of Consumer Prices Falls Below Zero in January 2025 - ForexTV
In a surprising economic development, France's Harmonized Index of Consumer Prices (HICP) experienced a dip into negative territory for January 2025, marking a decrease of -0.2% according to the latest data updated on January 31, 2025. This follows a modest increase of 0.2% recorded in December 2024.The shift from a positive to a negative HICP indicates a notable change in the country's inflationary trend, which is calculated on a month-over-month basis. This decline into negative figures raises questions about underlying economic forces at play, such as issues in consumer demand, shifts in production costs, or adjustments within the broader European economic landscape that have impacted prices.Such a deflationary trend can have far-reaching implications on the French economy, potentially influencing business investment decisions, consumer purchasing behavior, and monetary policy considerations by the European Central Bank. As these figures mark a significant move from December's figures, economic analysts and policy-makers will be paying close attention to subsequent data releases and underlying factors driving this change in consumer prices.The material has been provided by InstaForex Company - www.instaforex.com
Morning Bid: RBA poised, China tech booms, Japan GDP sizzles
On the economic front, the main event locally will be the Reserve Bank of Australia's expected quarter-point cut to its cash rate to 4.10%, its first reduction in over four years. That cycle could accelerate, after figures on Monday showed Japan's economy grew at an annualized 2.8% pace in the October-December quarter, nearly three times faster than the consensus 1.0% in a Reuters poll. Recent inflation and wage growth data have also surprised to the upside, but the Bank of Japan will be cautious about raising rates after decades of deflation and ultra-loose policy.