For October 2008, there was good news on the inflation front in both the United States and Canada. The year-over-year change in the all-items Consumer Price Index (CPI) in the U.S. dropped from 4.9% the month before to 3.7% and, in Canada, it fell from 3.4% to only 2.6%. However, in the opinion of some, the news on the inflation front may be too good. This is raising concerns about the possibility of generalized “deflation”.