Japan Slips Into Deflation...Why?

Deflation, its a word that will send a shiver up any Economist's Spine. Last night, Japan revealed that prices, at the consumer level, had fallen 1.2% in the month of December. Let's look at the implications. Japan is one of the most advanced Economies in the world. A technological and industrial powerhouse. Overall it has the third-largest national economic output, behind only the United States and China.