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
Answered by Charles G. Economics tutor

2515 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why does profit maximisation occur where MR=MC?


Comment on whether an increase in the rate of interest would reduce investment.


Is inflation always bad?


Evaluate the likely microeconomic effects of government intervention in the UK housing market.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning