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dis·in·fla·tion  disinflation pronunciation" /> /ˌdɪsɪnˈfleɪʃən/ Show Spelled[dis-in-fley-shuhn]

noun Economics .

a period or process of slowing the rate of inflation.

A drop in inflation rate , i.e . a reduction in the rate at which prices rise

-

(of an economy) to slow down the rate of inflation.

verb (used with object)

2.

to slow down the rate of inflation in (an economy).

Definition: Disinflation occurs when the inflation rate is declining over time.

Deflation occurs when the inflation rate becomes negative.

Terms related to Disinflation:

  • Deflation
  • Inflation
  • Recession

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-Inflation is one of the most important variables in economics, as its impact is felt on everything from mortgage rates to union-management contract negotiations.

The Economics Glossary defines Inflation as: Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole.

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