What is Deflation?
Deflation is a sustained fall in the general level of prices, the opposite of inflation.
It sounds good for shoppers, but widespread deflation can lead people to delay purchases, hurt company profits and make debts harder to repay.
Why it matters to you
Central banks generally try to avoid deflation as much as high inflation.
FAQ
What is Deflation?
Deflation is a sustained fall in the general level of prices, the opposite of inflation.
Is deflation the same as disinflation?
No. Deflation means prices are falling; disinflation means prices are still rising but more slowly.
All plain-English definitions → · Educational only, not investment advice.
