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.
Few living Americans know what it’s like to face the opposite phenomenon: deflation. Since too much inflation is generally regarded as a bad thing, wouldn’t it follow that deflation might be a ...
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 ...