Two contrasting statements are hitting the front pages today.  On one side of the Atlantic, deflation has arrived in the U.K. High Streets. A report from British Retail Consortium (BRC)-Nielsen Shop Price Index shows that shop prices across the retail sector dropped by 0.1% in August, compared to a year ago.  This is the first time the inde has registered a drop since 2007.

From UKPA:

“Stephen Robertson, director general of the BRC, said: “The fall has been driven by a huge drop in food inflation – which is now less than a quarter of what it was last August.

“This reduction is largely due to commodity prices, such as oil and wheat, falling since last summer’s peak to much lower levels.”

He added: “Falling prices are good news for customers and could give a much-needed boost to retail sales.”"

While on the other side of the Atlantic, the Chicago Federal Reserve Bank President Charles Evans said Wednesday that economic deflation in the U.S. has been quashed:

“Deflation has been averted,” he said. “And as the economy continues to improve, and when we see rising inflation pressures, Fed policy will respond aggressively.”