Disinflation: meaning, definitions and examples
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disinflation
[ ˌdɪsɪnˈfleɪʃən ]
economic term
Disinflation refers to a decrease in the rate of inflation – meaning that while prices may still be rising, they are doing so at a slower pace than before. This phenomenon often occurs during periods when economic growth begins to slow, and it can be a sign that central banks' monetary policy is starting to take effect. Disinflation is not the same as deflation, where prices actually fall. It is crucial for policymakers to monitor disinflation as it can impact consumer spending, investment decisions, and overall economic stability.
Synonyms
declining inflation, slower inflation.
Examples of usage
- The central bank's measures led to disinflation in the economy.
- There are signs of disinflation in consumer prices this quarter.
- Disinflation typically occurs after aggressive monetary tightening.
Translations
Translations of the word "disinflation" in other languages:
🇵🇹 desinflação
🇮🇳 अवशोषण
🇩🇪 Desinflation
🇮🇩 disinflasi
🇺🇦 дезінфляція
🇵🇱 dezinflacja
🇯🇵 デフレーションの減速
🇫🇷 désinflation
🇪🇸 desinflación
🇹🇷 düşüş
🇰🇷 디스인플레이션
🇸🇦 تخفيف التضخم
🇨🇿 dezinflační
🇸🇰 dezinflačná
🇨🇳 去通货膨胀
🇸🇮 dezinflacija
🇮🇸 aflýsing
🇰🇿 дезинфляция
🇬🇪 დეზინფლაცია
🇦🇿 dezinflyasiya
🇲🇽 desinflación
Etymology
The term 'disinflation' can be traced back to the economic theories of the 20th century, particularly during the post-World War II period when inflation became a significant concern for many economies. It was used to describe a situation where inflation rates, while still positive, were decreasing. As central banks started adopting more sophisticated monetary policies to combat rising prices, the concept of disinflation became more prominent in economic discussions. The term highlights the delicate balance that must be maintained in monetary policy: the goal is often to slow inflation without tipping the economy into deflation, which can have detrimental effects. By the late 20th century, particularly during the stagflation crisis, disinflation was a key topic of interest as economists sought to understand how to achieve stable prices while fostering economic growth.