The Economist joins the chorus of concern over the risk of inflation:
As measured by the GDP deflator, the best economy-wide gauge, America's inflation rate has fallen to 1.1%, its lowest for 40 years. Its consumer-price index has risen by 1.8% over the past 12 months, but prices have fallen in half of its 16 main product categories—the biggest proportion since the current series started.
Note that this article cites Stephen Roach of Morgan Stanley on the declining rate of inflation in services. My guess is that The Economist writer is referring to the Stephen Roach article I link to here.
|Share |||By Randall Parker at 2002 October 11 01:53 AM Economics Political|