Why it matters
Falling prices can lead people to delay spending, which slows businesses, investment and hiring.
Deflation in the news
More Economy terms
Gross domestic product
The total value of all goods and services produced in a country over a period, used as the main measure of the size of an economy.
Inflation
The rate at which the general level of prices for goods and services rises over time, usually measured over twelve months.
Central bank
The public institution that manages a country's currency, money supply and benchmark interest rate, such as the Federal Reserve or the Reserve Bank of India.
Interest rate
The price of borrowing money, expressed as a percentage of the amount borrowed. A central bank sets a benchmark rate that other rates follow.
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