"I wear 2 hats. Technologist and Macro economic enthusiast. My take is that the deflation being witnessed is a consequence of product substitution brought on by technological advances. Came in point the iPhone. No longer do I need to buy an alarm clock or CD's or weather vane or visit a travel agent or go to a bank branch etc. You get the drift. Technological advances are driving or deleveraging the need for a range of products which formally were based on the industrial model. Make a product, drive it into a market, gain dominance, iterate and up your price. It ain't about the price of oil." - Sean Kelly