disinflation

[dis-in-fley-shuhn]

noun

Economics.

1. a period or process of slowing the rate of inflation.

disinflation

/ ˌdɪsɪnˈfleɪʃən /

noun

1. economics a reduction or stabilization of the general price level intended to improve the balance of payments without incurring reductions in output, employment, and investment Compare deflation

Other Word Forms

• disinflationary adjective

Word History and Origins

Origin of disinflation¹

First recorded in 1875–80; dis- ¹ + inflation

Example Sentences

Progress on underlying disinflation is continuing, the central bank said, reflected in easing of pay growth.

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Recently, concerns about inflation, which remains about a percentage point above the Fed’s 2% annual target, and the risk that easing too quickly could stall the disinflation process, have grown more prominent.

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If this drift continues, the Fed may find that the last mile of disinflation is not just difficult, but unreachable.

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Rather than cutting Bank Rate now, I would prefer to wait and see if the durability in disinflation is confirmed in upcoming economic developments this year.

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Fiscal adjustments and disinflation can become political assets when the alternative is drift.

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