Are we in the UK going to see deflation, similar to that that hit Japan?

Question

Are we in the UK going to see deflation, similar to that that hit Japan?

Answer 1

It's possible, but in my opinion unlikely. The main driver for the long Japanese deflationary period was the nation's unwillingness to spend, the Japanese are obsessive savers - the Japanese Post Office holds more funds than any other institution in the world.  That includes the US federal reserve by the way.  The Japanese govt. tried so many ways to get people to spend, but saving is ingrained in the national character.

And that's why I don't think the UK will see such a long and deep deflation.  Millions of us are hooked on credit, and the habit and culture of saving has long since passed us by. So while we may see a little deflation, I don't think it will be anything like the Japanese one.