Fed study says US deflation risk was overstated

- Central Banking staff
- 05 May 2004

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A new study from the Federal Reserve Bank of Atlanta says risks of U.S. deflation may have been overstated, blaming the scare last year on rent and used car prices rather than widespread disinflation.

Read the Atlanta Fed's Economic Review, First Quarter 2004

"These results suggest that the concern and discussion regarding overall price deflation were perhaps overstated," said the study 'Decomposing Inflation', published in the Atlanta Fed's first quarter Economic Review.

The study also found that

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