What is the difference between deflation and falling inflation?

Deflation is the state of an economy where prices are falling, representing a rise in the real value of money over time. If inflation is falling that means that the rate at which prices increase is reducing as time progresses. In short, deflation is a negative inflation figure as opposed to a decreasing inflation figure.

CG
Answered by Charles G. Economics tutor

2632 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Comment on whether an increase in the rate of interest would reduce investment.


How can you tell the difference between a positive and a normative statement?


What is GDP and is it a useful indicator to measure the standard of living?


Explain the term 'recession' and analyse two possible causes of a recession.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning