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This article is about inflation, deflation and their effects on the USA. After a long period of deflation and American economy's struggling period; there has finally been a state where inflation and deflation are not to be worried anymore.

TOKYO (Reuters) - Finance Minister Taro Aso said on Tuesday that monetary easing alone is not enough to end deflation and push up prices. "The deflationary mindset that has beset Japan for such a long time won't change suddenly. But we've seen some changes in the past two years, which is significant," Aso told parliament.

Germany's consumer price index fell 0.3% month-over-month in January. It's the first time the inflation rate went negative since September 2009. Deflation is when prices fall, consumers and businesses often hold back on purchases hoping for even lower prices to come. This article examines the economic risks of dropping prices and what it could mean in the future for Germany and Europe.

A bumper crop of grains has decreased the price for corn, soybeans and wheat. This is a good example as to how a non-price determinant of supply can effect the prices of products, which in turn cause an increase in demand. Although this may be good for the average consumer, economists need to make sure that inflation doesn't fall too low, or cause deflation. This could cause corporate profit losses, causing wages to lower, which could potentially cause the economy to go into a recession.

Inflation is expected to fall to a fresh record low of just 0.1% when figures are released today, as Britain heads for a period of deflation. A fall in the consumer prices index in February from 0.3% in January would provide a further boost for households already benefiting from falling fuel and food prices.