More benefits from the bad economy. Inflation slows to half-century low in 2008:
Inflation slowed to a half-century low last year and industrial output fell for the first time since 2002, data showed on Friday, as the recession deepened toward year-end, raising the specter of deflation. . . .
The Consumer Price Index dropped 0.7 percent in December, a third straight monthly decline, capping a year in which prices advanced only 0.1 percent — the weakest 12-month reading since December 1954, the Labor Department said.
On the other hand, the nearly trillion dollar bailout bill is sure to be inflationary. Indeed, that is its main goal, to raise the price of stocks and housing.
What are the chances of the inflation exactly canceling out the deflation?
Which is better, inflation or deflation?
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