Japan once had a good deal of inflation. That was over a long time ago. MarketWatch reports in Japan's wholesale prices mark record drop in June:
LOS ANGELES (MarketWatch) -- Japan's domestic corporate goods price index, the nation's benchmark measure of wholesale prices, fell a record 6.6% in June from the year-ago period, the Bank of Japan said Friday.
The result was a heavier drop than a 6.3% fall forecast in a survey of economist by Kyodo News and a 6.4% projection in a Reuters poll. It was also the largest on-year tumble on record.
From May, the index was down 0.3%. Export prices were down 12.8% on year in June, while import prices were 32.2% lower.
"The slide in wholesale prices is highly likely to widen in July, August and September, exceeding 7% down the road," Tetsuro Sawano, senior fixed income strategist at Mitsubishi UFJ Securities, was quoted as saying in a Reuters report following the data. "Today's data would help the Bank of Japan reinforce its cautious stance on the economy."
I wouldn't be certain that the same situation could not occur in the U. S.
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