Oct
17
The subject of deflation comes up often, such as last week when PIMCO’s Bill Gross stated he was adding to positions in U.S. Treasuries as a defense against deflation. Protecting against the potential of deflation is one thing, especially when a range of outcomes is possible. Gross and his investment committee have alternately voiced concerns over inflation and deflation in recent months.
But in isolation, deflation is not an especially probable outcome. It could happen, yes. Some have pointed to the current year-over-year readings on the Consumer Price Index as evidence that we’re already experiencing deflation.