Disinflation
Definition. Disinflation is a fall in the rate of inflation, so that prices are still rising but at a slower pace than before. It is distinct from deflation, in which the general price level actually falls and the inflation rate becomes negative.
A move from a higher inflation rate to a lower but still positive one is disinflation. It is often the aim of contractionary policy when inflation is judged too high.
This term belongs to Measuring Inflation and the CPI in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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