TRADING GLOSSARY
Disinflation
Disinflation is a slowdown in the rate at which the general price level rises. Prices are still increasing when inflation remains positive, but more slowly than before; this differs from deflation, where the general price level falls.
EXAMPLE
In a hypothetical economy, annual inflation slows from 6% to 4%. This is disinflation: average prices are still rising, not falling.
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