What is the difference between deflation and falling inflation?

Deflation is the state of an economy where prices are falling, representing a rise in the real value of money over time. If inflation is falling that means that the rate at which prices increase is reducing as time progresses. In short, deflation is a negative inflation figure as opposed to a decreasing inflation figure.

CG

Related Economics A Level answers

All answers ▸

What is the impact of technological advances on a market?


State and explain all of the factors which can shift the demand curve of a product


How can an increase in government spending affect the economy?


Define market failure and give two examples in which this may occur.