What are Consecutive periods of deflation?

Answer 1

Consecutive periods of deflation refer to multiple time frames in which the overall price levels of goods and services consistently decline. This phenomenon can occur over several months or years and is typically measured by negative inflation rates in consumer price indices. Prolonged deflation can lead to decreased consumer spending, increased debt burdens, and economic stagnation, as people may delay purchases in anticipation of lower prices in the future. Central banks often seek to combat deflation through monetary policy measures to stimulate economic growth.