But that's the core problem. Major global economies are starting to fall into deflation. Starting with Europe;
EUROPE'S PLUNGE INTO DEFLATION IS COMING Mike Bird Nov 28, 2014
Eurozone inflation figures just released put the rate at 0.3% in November, down from October’s 0.4% and in line with estimates.
With the recent impact of oil prices, that means deflation isn’t just a possibility for the eurozone: markets are now suggesting it’s the most likely outcome in a few months’ time..
And Australia will follow as commodity prices continue to fall, unemployment continues to rise and our historic housing bubble deflates. That's why the RBA will be forced to follow the market and slash rates to 1% or below by the end of 2015.
