Sentences with phrase «outright deflation»
"Outright deflation" refers to a sustained decrease in the overall prices of goods and services in an economy. It means that prices are consistently falling over time, which can have negative effects like reduced consumer spending and business profits. Full definition
The Euro Zone continues to struggle and flirts with outright deflation — another harbinger of tough times for commodity demand.
discoveryinvesting.com
Worries about disinflation, and whether it could morph into outright deflation, have spread world wide and the risks are such that investors are wagering the U.S. Federal Reserve might go slow on policy tightening next year even if its economy continues to outperform.
Nevertheless, FED officials generally would need additional data points to conclude the formation of a new trend (the famous saying of «3 data points form a trend»), but even slightly stronger optimism over inflation would already serve as a stark contrast vs. market speculation of outright deflation followed by Federal Reserve implementing negative rates, or completely ruling out rate hike for the next 10 months.
Broad price trends had recovered from outright deflation.
This is certainly true as there are many differences in our economies and we are not fighting outright deflation as our demographic issues are not nearly as troubling as in Japan.
To be clear, we do not forecast second - round effects to lead to a self - sustained wage - price downward spiral, and the data are certainly not consistent with outright deflation.
However, inflation that is too low or outright deflation can be just as destructive — just ask Japan.
The Federal Reserve has served notice that while it likes the productivity gains under way, it doesn't like the temporary job losses that are accruing because those losses could lead to a consumer psychology of deterioration and outright deflation.