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disinflation

   Also found in: Dictionary/thesaurus, Wikipedia 0.04 sec.
Disinflation
A slowing of the rate at which prices increase. Typically, this occurs during a recession as sales drop and retailers are not able to pass on higher prices to customers.

Notes:
Disinflation is not to be confused with deflation, where prices actually drop.


Disinflation
A decrease in the rate of inflation.

disinflation
A slowdown in the rate of inflation. A drop in the inflation rate from 3% in one year to 2% in the next year is an example of disinflation. On an overall basis, disinflation is good for security prices, but it can be painful for individual companies that have made investment and borrowing decisions based upon a belief that a high rate of inflation would continue. See also inflation.

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After a deep recession, a healthy disinflation process ensued from 1983-96--bringing tight money, lower tax rates and falling commodity prices.
Depreciate the actual real exchange rate through German disinflation (the Issing route);
Usually, this mode of differential accumulation is accompanied by falling military spending, disinflation, and revived growth.
 
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