falling prices

FEARS of a general deflation may be receding but in the rich world's housing markets at least, falling prices are still the norm.

With a good harvest and falling prices of almost all major commodities, inflation is not a big worry for the moment.

But by this stage, inflation would be a blessing: an economy where conventional policy tools had failed would suffer from falling prices.

China's steel association said some of its steelmakers were planning to cut production by about 20% to help buoy falling prices.

Falling prices and a strong currency are hampering efforts to foster a recovery.

Falling prices also encourage businesses and consumers to save rather than spend, because money would be worth more after prices decline.

Required for a cotton dress fabrics, falling prices are cheap for a few dollars to a dozen.

Problem is, if heading into deflation, where even falling prices can be too much of a good thing.

When falling prices squeeze the fingers of thousands of buyers, they dump their holdings in a panic, disregarding fundamental values.

Analysts said now the fear may be for a deadly economic problem: deflation, marked by steadily falling prices and economic stagnation.

In 2009 falling prices, combined with a flurry of deals, announcements and technical upgrades, primed the market for a vast expansion.

On the contrary, falling prices will increase purchasing power of money and restore prosperity.

The housing market is showing new life after three years of falling prices and too much supply.

since falling prices were associated with depression, recovery ought to be encouraged by rising prices.

A global glut, or at least expanding supplies and falling prices, in natural gas.

In the face of the falling prices, H-P has tried to maintain its profit margins by putting the squeeze on suppliers.

The main reason for falling prices and increasing the export tax rebate rate to provide enterprises with a price cut.

He described the tone of the meeting as one of "panic" at falling prices.

Falling prices would make it tougher for borrowers to pay off debt, leading to even more defaults and even tougher lending standards.

The bump in sales was ahead of forecasts, spurred by falling prices, low mortgage rates and a federal tax credits for buyers.

If falling prices raise the rate of default, that could in turn worsen the credit crunch, putting yet more pressure on prices.

After years of being static or falling, prices of U. S. imports from China rose 1 percent in the three months to July of this year.

To consider the possibility of falling prices may seem odd when inflation is still uncomfortably high.

This divergence now needs to be reversed, either through falling prices in the south or through rising prices in the north.

Falling prices of goods and services remove any urgency from spending plans - if you wait , it may be cheaper next month .

Motor fuel also accounts for a larger share of Americans' spending, so falling prices will depress inflation by more.

True, 15 years of more or less continuously falling prices have not triggered the crisis some predicted.

Falling prices for manufactured goods though was a good thing for frantic consumers in the west, particularly in the US.

The housing market is showing new life after 3 years of falling prices and too much supply.

After eight consecutive days of falling prices, the Stock Market unexpectedly bounced back this afternoon with an encouraging 120 points.

It does not help that many countries impose restrictions on short-selling (the ability to bet on falling prices).

Perhaps this is one explanation for the government's and the Bank of Japan's (BOJ's) failure to end Japan's long run of falling prices.

Yet falling prices, in the long run, may not be all good news.

Falling prices, meantime, are dismissed by bulls as "good" deflation; cheaper pork frees up more money for discretionary spending.

Although falling prices have probably boosted sales, Mr Shaw says people are still willing to spend hundreds on their displays.

For young professionals and others aiming to jump onto the first rung of the property ladder, falling prices might even boost consumption.

Shoppers' willingness to spend more on PCs stands out against the falling prices of other electronics.

Short sellers aim to profit from falling prices by borrowing shares and selling them in the hope of buying them back for less.

Nominal growth , without the effect of falling prices, was a more modest 1. 4 per cent on an annualised basis .

With interest and mortgage rates already inching higher, falling prices would keep housing affordable for new buyers.

Analysts believe rapidly falling prices could hurt profitability at traditional phone makers.

Falling prices may give U. S. buyers an advantage at home, but their upper hand doesn't necessarily extend beyond the nation's borders.

They also will be best positioned to keep investing in new products, to hire talent and to take advantage of falling prices for deals.

If the recovery unravels, however, falling prices could become a serious problem.

Instead of the desired effect, their arrival on the market put additional pressure on already falling prices, " he says. "

Indebted investors are also being forced by their banks to sell as falling prices reduce the value of their collateral.

To a certain extent, that's OK; prices moderate after bubbles burst. And falling prices do have some positive effects on the economy.

attributes the falling prices in North America to the economic slowdown and the subsequent reduced demand for rooms.

Falling prices and recently liberalised markets have boosted their businesses.

Are rich economies heading merely for a bout of falling prices, or for a 1930s-style deflationary spiral?

Price-wise, they believe mortgage rate reductions and falling prices have put more properties in the reach of home buyers.

Falling prices could drive more homeowners into foreclosure, which is the last thing most markets need.

In solar, global overcapacity and falling prices have hit companies in China just as they have in the US and Europe.

The pharma industry has long argued that falling prices will threaten its ability to invest and develop new medicines.

Falling prices would make their already crippling burdens even heavier.

Even investors who "shorted" stocks, hoping to profit from falling prices, attracted less blame.

By creating a market for the toxic assets, Mr Paulson hopes to halt the spiral of falling prices and bankruptcies.

In a period of falling prices, companies can find it challenging to generate profits, putting pressure on stocks.

Falling prices for property would knock land prices lower and increase defaults from both sources.

However, for now Premier Wen is likely more worried about protests over rising food prices than the falling prices of apartments.

Until that changes the vicious cycle of rising foreclosures and falling prices will continue.

But students now hope that falling prices will provide them with a windfall.

But the local government for falling prices may be lower than the bearing capacity estimation.

In heavily indebted economies falling prices would increase the real burden of consumers' and governments' debts.

Mr. Barry says falling prices are a major plus for electronics sales.

In any case, falling prices are no cure-all in the long run.

Falling prices erode the value of collateral, tightening credit and depressing demand.

The NAND market has been reeling under falling prices and oversupply despite increasing demand.

Falling prices only work to your advantage if you can maintain your income.

And their impact on inflation has been offset by falling prices of goods exported by emerging economies.

Falling prices may have helped the government by providing its bondholders with invisible gains, but in other ways deflation is a menace.

Falling prices and rising costs have yet to produce sustained losses.

In the U. S. , Europe and Japan, falling prices have become a big concern.

Inflation also is low -- so low that some economists worry more about the risk of falling prices and wages.

Bond prices move inversely to yields, so falling prices mean rising yields.

The spectre that central banks will overdo their fight against falling prices, causing a big comeback of inflation, is another concern.

Rising stocks imply slowing demand and herald falling prices.

The healthiest of economies will exhibit falling prices.

Falling prices would have a "tangible negative wealth effect, " Steiner writes in the Hedgeeye blog, "GETTING PUNCHED IN THE FACE. "

But this revolution is not just about falling prices.

However recent wobbles in rice production have reversed a long-term trend of falling prices.

They often rebound as investors who have gone short (bet on falling prices) take profits.

The inevitable result was today's higher prices, which will probably lead to glut and falling prices tomorrow.

A noted sceptic on the dotcom and housing booms, he closed his short-only fund (which bet on falling prices) in 2008.

That is low enough to mean falling wages for many households and falling prices for many firms.

Supply rising, demand dropping. That's a recipe for falling prices.

Despite falling prices, the appetite to list remains keen.

Falling prices would raise the real burden of debts. The prospect of lower prices would weaken demand.

But this is not true deflation, where falling prices are accompanied by shrinking money supply and credit.

Deflation can make a slowing economy worse, because falling prices give consumers an incentive to delay purchases until prices fall further.

Falling prices in the housing market are feeding a credit crisis.

If anything a reverse spiral of falling prices applies.

One, such as an investor, that sells securities or commodities in expectation of falling prices.

Maintaining margins becomes almost impossible, however, if this is combined with falling prices.

Yet the central reason for all the deals is falling prices.

Europe, too, is grappling with weak or falling prices.

Should we really be worried about falling prices?

But falling prices have stripped the sector bare.

Finally, the period of abundant natural resources and falling prices is over.

Falling prices are forcing many to sell their cows for meat.

That is what happened in the 1980s when a decade of advances for alternative energy collapsed amid falling prices for conventional fuels.

At the same time, falling prices indicate a lack of demand and raise questions about overall economic activity.

Zillow has reported falling prices for 57 consecutive months.

If that burden grows even heavier because of falling prices, the contractionary forces will strengthen.

She says falling prices are adding to the growth.

In the longer term, falling costs willset the stage for falling prices.

Falling prices can make businesses and consumers reluctant to spend and invest, hurting profits and crippling the economy.

By deflation I simply mean a sustained period of falling prices.

Falling prices are accentuated in illiquid markets such as residential property.

As a big exporter of commodities it will be squeezed by falling prices.

Quantitative easing was used by Japan when it faced deflation - a period of falling prices - from 2001 until 2006.

Bear market A prolonged period of falling prices.

Falling prices would raise the real burden of debts.

Which is the more worrying: rising prices or falling prices?

"The real estate market in China is worse than a gambling den, " one blogger wrote earlier this week, complaining about falling prices.

Falling prices for important raw materials, such as steel and natural gas, should help to bring down development costs.

Nonetheless, if we enter an era of flat or falling prices, one thing that will have to change is the way we look at interest rates.

Q: Falling prices lead to falling wages.

Not only is the yen cheap in nominal terms, but many years of falling prices in Japan have made it even more competitive.

If falling prices cause a building slump, it will have a big impact on the economy.

Falling prices are fueling growth in high-speed Internet services, especially in developing countries.

Falling prices mean that nominal GDP, which last year hit its lowest level since 1991, is likely to remain in the deep freeze.

These same falling prices have boosted home sales from the depressed levels of last year.

That's because in Japan, falling prices have squeezed wage costs and helped exporters maintain market share.

And in Japan, which has battled falling prices for more than a decade, they fell by 1. 5%.

Falling prices for personal computers are bad news for the environment

put a floor under falling prices