Business, Legal & Accounting Glossary
A drop in the inflation rate, i.e. a reduction in the rate at which prices rise.
Disinflation occurs when the overall rate of inflation decreases over a given time period. With inflation being an increase in the general level of prices, disinflation means that the rate of that increase has slowed. In other words, during disinflation, the prices of goods and services are still increasing, but they are increasing at a slower rate than before. Disinflation is sometimes confused with deflation. Deflation is a decrease in prices over time, while disinflation is only a decrease in the inflation rate over time. Disinflation is generally perceived as positive and is considered to be good for the economy. However, it should be noted that disinflation can sometimes lead to deflation, which is generally perceived to be negative for the economy.
There was a lot of disinflation going on and I wondered why there was so much change in the business atmosphere lately.
The disinflation has caused a dramatic increase in the prices of the items available in that store next door to the grocery store.
The disinflation was encouraging as all people had less purchasing power now compared to last year so at least the economic conditions are improving.
disinflationary
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This glossary post was last updated: 29th October, 2021 | 0 Views.