Consumer prices in the U.S. fell at a breathtaking annual rate of nearly 13% in the last three months of 2008. Prices plummeted for all sorts of goods, rang -ing from clothing to TVs to furniture, as retailers advertised sale after sale. But deflation missed big chunks of the economy. For all of 2008, college tuition and fees increased by 5.8%, followed closely by price increases forrnhospitals and legal services. Even fees for preparing tax returns are going up.rnThis inconsistency in prices casts doubt on the usual explanation for the recession, which is that it's mainly due to the credit crunch and the resulting squeeze on demand. It also hints at why government efforts to fight the downturn have been ineffective so far.
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