As Prices Fall In England, Mark Carney Muses About Deflation

Carney notes lowered prices in the region but isn’t calling it the “D” word just yet

As quantitative easing is expected to rain across Europe, Mark Carney, head of the Bank of England, wonders if it will be enough to generate a headwind to stave of deflation on his island economy.

The head of England’s central bank said the economy is on course for its first period of declining prices since records were taken in 1989. Mark Carney, in a letter to George Osborne, the Chancellor of the Exchequer, said the economy is not at risk of falling into a dangerous deflationary spiral, however.