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Also known as economic deflation, negative inflation, price decline, price erosion, price collapse, price deterioration
In economics, deflation is an increase in the real value of the monetary unit of account, as reflected in a decrease in the general price level of goods and services exchanged, measurable by broad price indices.
Deflation is when the general prices of goods and services fall over time, meaning each unit of money becomes worth more than it was before. It matters because deflation can affect economic decisions—for example, people and businesses may delay spending if they expect prices to drop further, which can slow economic activity.
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