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Deflation fears rise as prices fall in December
The December consumer price drop of 0.7 percent followed a 0.1 percent annual gain, signaling deflation risks amid a sluggish economy. Economists foresee continued price declines into 2009 as jobs fade and spending slows, with firms cutting thousands of positions, including Circuit City 30,000 jobs and Hertz 4,000 worldwide.
MENTIONED IN THIS ARTICLE
Washington, D.C
Federal Reserve
Fed
Labor Department
Circuit City Stores Inc
U.S
Hertz Global Holdings Inc
WellPoint Inc
Mark Zandi
Moody’s Economy.com