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Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this change in price level?
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Imagine this scenario: the inflation rate has fallen from 4 percent to 1 percent. How would you label this change in price level?

User Pat Myron
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If inflation rate fell to 4% and drops to 1%, there is a disinflation. It happens when the inflation rate slows down and makes a decrease of product prices using the gross domestic product as the basis. A deflation comes when it goes to 0%.




User Ranjit Patel
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