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Deflation continues to be a worry as McDonald's (MCD +0.5%) plans to raise prices just 2-2.5% in...

Deflation continues to be a worry as McDonald's (MCD +0.5%) plans to raise prices just 2-2.5% in the U.S. and 3.5-4.5% in Europe.
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Comments (4)
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    I'm confused. We are in a DEFLATIONARY situation because McDonald's is RAISING their prices by ONLY 2-2.5%. I thought prices went down in a deflation. But I guess those economic texts are obsolete.
    24 Jan 2011, 06:34 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (557) | Send Message
     
    "Deflation" was meant to be a sarcastic comment ... :)
    24 Jan 2011, 06:35 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    Thanks. I thought it was Orwellian speak.
    24 Jan 2011, 06:49 PM Reply Like
  • Duude
    , contributor
    Comments (3398) | Send Message
     
    Surely, Bernanke would point out McDonalds' real estate holdings have seen a deflationary effect and that would offset higher food prices. Fuzzy math is all the rage in DC.
    24 Jan 2011, 06:54 PM Reply Like
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