US inflation falls

It is down 1 percent in a month, which is definitely one for the deflationists.

However, we still have some way to go before we hit a true deflationary spiral ie when the inflation rate turned negative and the price level falls.

The chart above tracks the US inflation rate since 1914. Deflationary periods were quite common after the end of the first world war. However, there there none after the end of the Korean war.