This morning the Bureau of Labor Statistics reported that Producer Prices declined (-1.9%) in December. Annual PPI for 2008 was (-1.2%), the first decline since 1950.
In the last 5 months, producer prices have declined (-8.2%). This far eclipses the dot.com decline of (-3.2%) in 2001-2, and the post-WW2 decline of (-6.2%) in 1949-50.
We are witnessing the biggest price collapse since the Great Depression.