Japan's deflation woes

To the man on the street, deflation does not seem like a bad thing - prices are falling, so what can be so bad?
However Japan has been through the experience of deflation, in the late 1990s, and has a different tale to tell.

http://news.bbc.co.uk/1/hi/business/7955931.stm

Japan's consumer prices fall on weak domestic demand

Japan's consumer prices have fallen for the first time in four months, as weak domestic demand and deflation continue to weigh on growth.

http://www.bbc.co.uk/news/business-15884340

Youtube video on Deflation

Phil Holden on why deflation is potentially so bad.

http://www.youtube.com/watch?v=LH7cFQrgxpk&feature=channel_page

RPI inflation turns negative

UK annual inflation measured by the Retail Prices Index (RPI) went negative in March for the first time since 1960, to -0.4%, down from zero in February. RPI includes mortgage costs, which have fallen following the Bank of England's reductions in interest rates.

The Consumer Prices Index (CPI), fell in March to 2.9% after February's unexpected rise to 3.2%, the Office for National Statistics (ONS) said.

http://news.bbc.co.uk/1/hi/business/8009718.stm

Plummeting global oil prices could boost UK economy BUT ...

Ernst & Young ITEM Club research released today forecasts that falling oil prices, one of the few bright spots for British consumers this winter, could provide a further substantial boost to the economy in the next 3 years but might also spark deflation.
http://www.ey.com/GLOBAL/content.nsf/UK/Media_-_09_01_05_DC_-_Plummeting_oil_prices_could_boost_economy

The danger of Deflation

It's a measure of how dramatically the outlook has changed that the D word is now being used extensively (even by the Prime Minister) just a couple of months after rising inflation appeared to be the main threa
http://news.bbc.co.uk/1/hi/business/7736193.stm

Gordon Brown warns of Deflation

As consumers continue to cut spending, the Prime Minister has warned that Britain is facing the threat of Deflation in the year ahead.
http://news.bbc.co.uk/1/hi/uk_politics/7734664.stm