Disinflation — Social Studies definition
A slowing positive rate of price increase.
Where it is taught
- Business Cycles, Employment & Inflation — Measuring the Economy & Public Policy, Government, Civic Participation & Economics, Grade 12
In use
Inflation measures a rise in a defined price index over a period; deflation is a decline; disinflation is a slowing positive rate.
Business Cycles, Employment & Inflation
Questions using disinflation
Problem 1
What is the difference between disinflation and deflation?
Answer and explanation
Disinflation is a lower positive rate of price increase; deflation is an actual price-index decline. Prices can keep rising when inflation slows. Identify the index and period rather than interpreting a smaller rate as falling prices.