Services sector falls key to deflation

If the world is to move into a period of widespread deflation, the price falls we have already seen in the goods sector will need to be extended to the services market. Other parts of the global economy, notably the US, will be required to succumb to the forces causing deflation in the countries in which it is currently being experienced. There is a risk this could occur, but there are also good reasons this is not the most likely outcome. In the countries that have been experiencing deflation, such as Japan, China and Hong Kong, local factors have contributed significantly. ...