The talk of deflation, a general decrease in prices, is now becoming more common. Wasn’t it just a few months back that we were worrying about inflation and its cousin stagflation? But, I think the new fears are a bit unfounded. Inflation is not simply defined as ‘rising prices’ but as ‘too many dollars chasing too few goods.’ In the case of deflation, it’s just the opposite, too little demand, and not enough cash to buy the goods offered. I think the mini-bubble we saw in gas prices rippled through the economy and added cost to everything, from food, to any goods tat contained a transportation component in their cost. Now that oil has dropped to a somewhat more reasonable level, gas following, that cost is being pulled out of all goods, thus the short term drop in both the Producer Price Index (PPI) and Consumer Price Index (CPI). Deflation? I doubt it.