Simple English definitions for legal terms
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Term: DISINFLATION
Definition: Disinflation is when the rate of inflation slows down. This means that prices are still going up, but not as quickly as before. It is different from deflation, which is when prices actually start to go down.
Definition: Disinflation is a situation where the rate of inflation slows down over a period of time. It is different from deflation, which is a decrease in the general price level of goods and services.
Example: Let's say the inflation rate in a country was 10% last year, but this year it is only 5%. This means that the country is experiencing disinflation.
Explanation: Disinflation occurs when the rate of inflation decreases, but it is still positive. In the example above, the inflation rate is still positive, but it is lower than it was before. This means that prices are still increasing, but at a slower rate. Disinflation can be caused by various factors, such as a decrease in demand for goods and services, a decrease in the money supply, or an increase in productivity.