Why is deflation a concern?
There are fears that that the US economy could fall into a depression, and this could cause deflation. These concerns have emerged after US consumer prices fell 0.8% in April 2020. Most people understand that a depression is something that needs to be avoided, but what about deflation? It is less understood but is something that investors need to be concerned about. Definition of deflation Deflation is defined as the decrease of the general price level of goods and services. …