Disinflation Totally Explained

Everything about Disinflation totally explained

Disinflation is a decrease in the rate of inflation. Being how much prices are increasing per unit of time, it can be expressed using the word disinflation: The slowing of the rate of inflation per unit of time. For example one month the rate of inflation was 4.4% and the next month the rate of inflation was 4.0%. In this instance the price of goods and services is still increasing; however, it's increasing at a slower rate, 0.4% less, than a month before. It shouldn't be confused with deflation, which is an overall decrease in prices.

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