is a decline in the rate of price increase and differs from deflation which is caused by businesses lowering prices in a desperate attempt to get consumers to buy their products.
For example, the common consensus is that UK inflation levels are going to continue weakening and possibly enter a short-term disinflation
period before inflation rises again later on.
Deflation, inflation, and disinflation
represent different behaviours of the price level.
That is, some disinflation
(fall in inflation) called for by the models is missing in the sense that it hasn't occurred.
s recent disinflation
has resulted from technological innovations that raise economic performance and potential," Levy writes.
The differing patterns among these various measures suggest that comparisons between the 2010 disinflation
and today's disinflation
might benefit from digging into the details.
process continues as the pass-through from wage adjustments is strengthening and domestic demand remains under pressure," said Eurobank economist Platon Monokroussos.
4 years would be needed to achieve disinflation
from 40% to 10% annually.
Endogenous pricing models imply that price adjustment is less frequent, and disinflation
more costly, when firm-specific volatility is low.
Lack of Credibility, Inflation Persistence and Disinflation
in Colombia *
Weak economic activity and this year's appreciation of the krona continue to support disinflation
,' it added.
Zhang (2005) found a negative relationship between sacrifice ratios and initial inflation rates, and the cost of reducing inflation is generally lower when the speed of disinflation