The minor threat of major global deflation

GLOBAL deflation seems an unlikely topic the morning after we have been dubbed the most expensive country in Europe by a massive 12% margin.

However, when we get over the shock of topping the euro price league, the far more worrying prospect of global deflation faces us.

That's a situation where prices start to fall. While this might be very welcome news here, the underlying implication of such a development is the threat of global recession.