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Concerns about deflation from obscure source

Pay attention to disturbing signs from a young and normally unnoticed derivatives market providing new perspectives on inflation expectations

The Federal Reserve has failed to instil sufficient confidence that it stands ready to fight the drag of very low inflation or outright deflation.

SOMETHING unusual is happening to prices in the US right now: they are falling. The recent sharp decline in petrol prices is part of the story, but there is now growing fear that the Federal Reserve will undershoot its own 2 per cent inflation target, hindering the economic recovery. There's...

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