Economists confident there is no danger of deflation, BUSINESS TIMES

Business Times (Malaysia)

04-23-2001

INFLATION, the rate of increase in the price of goods and services in the
Consumer Price Index (CPI), may have slowed in March, but economists are
confident that there is no danger of deflation.
Deflation occurs when prices of goods and services fall because
consumers are holding back on their spending or when the increased demand
for money is not offset by an increased money supply.
While at most times it is not a big deal, deflation can be harmful if
there is a slump in demand resulting in excess c