Asset Price Deflation Coming Up? Food Prices About to Drop? CPI About to Go Negative? Credit Deflation?

Courtesy of Mish.

When inflation alarmists want to convince everyone the dollar is about to become worthless, they post this chart of the CPI.

CPI – Urban Consumers – All Items – Index

Inflationists claim that is a trend to oblivion. And actually it is. But it’s a slow trend towards oblivion with intermittent disruptions as the following chart shows.

CPI – Urban Consumers – All Items – Percent Change From Year Ago

As measured by consumer prices, inflation went negative from December 2008 until October 2009.

CPI – Urban Consumers – All Items – Percent Change Detail

The CPI hit a record low of -1.959 in July of 2009.

My prediction made in 2005 or so, was and still is “The US would go in a and out of deflation a number of times over a long period of time“.

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