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Disinflation |
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Disinflation A decrease in the rate of inflation.
Disinflation A situation in which the inflation rate decreases, but does not reverse. For example, disinflation occurs when the inflation rate goes from 5% to 2%. Importantly, it is not deflation when the inflation rate becomes negative. Disinflation is considered a normal and healthy part of a business cycle. Disinflation. Disinflation is a slowdown in the rate of price increases that historically occurs during a recession, when the supply of goods is greater than the demand for them. Unlike deflation, however, when prices for goods actually drop, disinflation prices do not usually fall, but the rate of inflation becomes negligible. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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On the other hand, continued disinflation strengthens the case for maintaining the current accommodative policy which could lead to waning loonie support . That depends on disinflation staying short-lived and not turning into full-scale Disinflation refers to a slowing of inflation, or rise in prices. |
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