Import Prices Shrink; Global Deflation Still ‘a Powerful Force’ By Amey Stone Even as small business owners celebrated the Trump victory in Tuesday’s report from the National Federation of Independent Business, another Tuesday report served as a more stark reminder that not all is well with the global economy. The Bureau of Labor Statistic’s import price report posted a decline of 0.3% in November, after rising 0.4% in October and 0.1% in September. “Global deflation remains a powerful force,” writes Steven Ricchiuto, Mizuho Chief US Economist. He points out that non-fuel import prices fell 0.1% in November for a second consecutive month while non-agricultural export prices also fell by 0.1% during the month. U.S. export prices also dipped in November. Much of this was due to lower fuel prices and fuel prices are much higher now than they were in November thanks to the rise in crude. Still, Ricchiuto points out, the strength in the U.S. dollar “opens risk of importing global deflation,” he notes.
Why producers just don`t give away goods for free and start it over??This question bothers me for the last 10 years.