Record fall in Japan prices fuel deflation fears

Defaltion is not the problem it'S the goddam middleman that drives Japans prices to ridicilous high levels, and that's a fact.

I'm not afraid of deflation. Prices in Japan could stand to come on line with actual product value.

nisegaijin - glad, atleast you understand from my one liner that i am a socialist. whereas, i fail to understand your concept from B5 size easy that deflation is purely monetary phenomenon...BOJ may come forward and refute this argument because it is always ready with trillions of yen in daily supply at ultra low interest.

Here's a great chart comparing worldwide inflation:

http://bespokeinvest.typepad.com/bespoke/2009/06/country-inflation-rates.html

I loves me some deflation.

some14some - another socialist who doesn't have a clue what he is talking about.

weatherjp - exactly right. Deflation is a consumer stimulus.

Another observation that is not mentioned in this article (just showing author's lack of understanding of economic concepts) is that CPI has nothing to do with deflation, as deflation is purely monetary phenomenon and is equal to country's money supply. Negative supply means deflation, and that is true for Japan. On the contrary, US, Europe, Australia all have positive (and quite high) money supply curves indicating inflation. You don't see prices rise at the moment because of deleveraging on the markets. That and lack of demand brin prices down, but this does not mean deflation.

Inflation is raging in its hidden form across the world, but markets won't be able to sustain it. Chances are we will see runaway inflation with prices for raw materials, food, and maybe real estate skyrocketing everywhere in the world, but if BOJ keeps its sound and conservative monetary policy, Japan can avoid inflation, preserve its citizens wealth and strong currency.

And for those of us who are debt-free, have decent savings and a secure job, a nice stretch of low low prices!

Not so much of a concern, (affordable) slight drop in profits for big businesses.