Disinflation

/ˌdɪsɪnˈfleɪʃən/ noun

Definition

The economic process of reducing inflation, where the rate of price increases slows down without necessarily causing prices to fall.

Etymology

From disinflate + -ion (noun suffix). This economic term emerged in 20th-century macroeconomics.

Kelly Says

Disinflation is different from deflation—prices keep rising, just more slowly; true deflation means prices actually go down, which is very rare and usually bad!

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