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Sure it could be. Can be marginally bad but it is good news
Posted on: May 15, 2025 at 13:19:08 CT
Achmed MU
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It could mean Inflation is easing: If wholesale prices fall, it can signal that inflation is cooling down. That’s good for us consumers, as businesses may eventually pass those lower costs on in the form of lower retail prices. Interest rate relief: Lower inflation increases the likelihood that the Federal Reserve (may stop raising interest rates or even begin to cut them)- wait and see. That’s positive for borrowing, investment, and stock markets in general - that’s good news
Cost pressure relief for businesses: Industry may see improved profit margins if their input costs drop, especially if retail prices don’t fall as quickly.- could be good news
Could be bad if Demand is weakening: If prices are falling because businesses are slashing prices due to weak demand, that could signal a slowdown or even a looming recession.
Deflation risk: Sustained drops in prices can lead to deflation, which discourages spending and investment, and can deepen economic downturns. I doubt this happens but could.
See it is good news possibly
Cost pressure relief for businesses: Industry may see improved profit margins if their input costs drop, especially if retail prices don’t fall as quickly.- could be good news
Could be bad if Demand is weakening: If prices are falling because businesses are slashing prices due to weak demand, that could signal a slowdown or even a looming recession.
Deflation risk: Sustained drops in prices can lead to deflation, which discourages spending and investment, and can deepen economic downturns. I doubt this happens but could.
See it is good news possibly
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Sure it could be. Can be marginally bad but it is good news - Achmed MU - 5/15 13:19:08