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Disinflation

Consumers might wish for prices to drop, but here's why deflation is not a good thing

by Samantha Fields
Mar 12, 2024
Most of the time deflation is a signal of a struggling economy. Disinflation — when prices still increase, just more slowly — is the goal.
Once prices go up, it’s unusual for them to drop.
Justin Sullivan/Getty Images
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What's the difference between disinflation and deflation?

by Elizabeth Trovall
Dec 18, 2023
Inflation has fallen sharply in the last year and a half, but prices haven't come down. Economists say that's not a bad thing.
You can compare changes in consumer prices to driving a car. Disinflation is like reducing your speed, but still moving ahead. Deflation, however, would be driving in reverse.
Scott Olson/Getty Images
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The producer price index hints at where consumer prices are headed

by Lily Jamali
Feb 16, 2023
Wholesale prices rose 0.7% in January, showing that inflation is sticking around.
Food prices for suppliers dropped 1% month over month, according to the producer price index.
Scott Olson/Getty Images
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What's disinflation, and why does it matter?

by Sabri Ben-Achour
Jul 30, 2020
Slowing inflation isn't as dangerous as prices dropping for a long period of time. But it's important to keep disinflation in check.
The menu of a ramen restaurant, for instance, can illustrate inflation, disinflation or deflation.
Frederic J. Brown/AFP via Getty Images
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