ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation’s gross domestic product over time. It is the opposite of reflation.

Detailed explanation-2: -This is called deflation. It is usually a sign that something is seriously wrong with the economy. Deflation leads to lower production and wages. This reduces demand from consumers and businesses, which then leads to still lower prices, and so on.

Detailed explanation-3: -Disinflation: Disinflation is a slowing of the pace of inflation. Unlike inflation or deflation, which refer to the direction of prices, disinflation refers to the rate of change in the inflation rate.

Detailed explanation-4: -Key Takeaways. Inflation is an increase in the general prices of goods and services in an economy. Deflation, conversely, is the general decline in prices for goods and services, indicated by an inflation rate that falls below zero percent.

Detailed explanation-5: -Disinflation is used to describe the slowing of price inflation. In other words, it is a decrease in the rate of inflation. The term should not be confused with deflation, which is used to describe a negative inflation rate.