Deflation occurs when the inflation rate falls below zero, and prices generally decline throughout an economy. Disinflation is what happens when the inflation rate falls but remains positive.

Worth noting: Inflation applies only if prices increase. When prices fall, it’s actually called “deflation.” If prices decelerate, or continue to increase but at a slower rate than in the ...

But as the price of goods and services tumbles, analysts are now starting to worry about the risk of deflation. Inflation rose by 4% in the 12 months to December. This was a surprise uptick from ...