DisinflationSubmitted by AssetGrade, LLC. on November 1st, 2013
submitted by Patrick Cote on November 1, 2013
This article ran in today's Economist. It discusses the phenomenon of disinflation, which is when the rate of inflation decreases. The recent data showed that inflation decreased significantly in Europe, as it has in the US, with both regions under 1%.
This has a real world impact on most of us: bonds become more attractive; stocks may be more attractive and only getting a small raise at work does not seem as bad.