I found this article very interesting. But deflation in the US pales in comparison to what's happening in Japan. "Core inflation for factory goods in the US fell to minus 0.6pc in October from a year earlier, edging the country closer towards Japanese-style deflation despite massive monetary stimulus. Janet Yellen, the head of the San Francisco Fed, said emergency measures had prevented the US economy from sliding into a âblack hole of deflationâ, insisting that it is still far too early to talk of tightening policy. A combination of âenormous slack in the economyâ and fading fiscal support raised the risk that prices could fall below the Fedâs safe level. âIt seems probable that core inflation will move even lower over the next few years,â she said." Mish's Global Economic Trend Analysis: Deflation Returns To Japan; Black Hole Madness In U.S.