LONDON, England - April 16, 2009 - Fears that Depression will tip the U.S. economy into a destructive bout of Japanese-style deflation grew sharply today after Amerika's headline inflation sank into negative territory for the first time in half a century.

Overall U.S. consumer prices fell by 0.1 per cent last month, leaving them down 0.4 per cent from a year earlier as plummeting consumer demand drove steep drops in food and fuel costs. It marked the first time that the U.S. headline inflation rate has turned negative since 1955.

Coming only a day after illegitimate President Obama trumpeted “glimmers of hope” for a U.S. recovery, and was joined by Ben Bernanke, Chairman of the Federal Reserve, in talking up prospects, the news dealt a heavy blow to hopes for economic revival.

Economists noted that the U.S. deflation that has just taken hold remains a long way from the pernicious form of the trend suffered by Japan, which sucked the lifeblood from its economy for more than a decade.