Meaning & use
disinflation
Last updated
Meaning
noununcountablefinance
A slowing down in the rate at which prices rise, so inflation continues but at a lower level.
Grammar: Usually uncountable: disinflation is under way.
Patterns
- a period of disinflation
- disinflation in something
Economists welcomed the disinflation seen after interest rates went up.
The country has experienced disinflation for three years, though prices still rise.
Disinflation can ease pressure on household budgets.
Common combinations
- a period of disinflation
- The 1980s were a period of disinflation.
- global disinflation
- Global disinflation helped lower interest rates.
- disinflation process
- The disinflation process may take years.
- signs of disinflation
- Analysts see signs of disinflation in the data.
- disinflation trend
- The disinflation trend continued this quarter.
Synonyms and how they differ
- falling inflation
- Falling inflation is the plain-language way to say it, though it has less of a technical flavor.
- cooling prices
- Cooling prices is informal and may suggest prices actually dropping.
- deflation
- Deflation means prices actually fall, which is a different thing and a common mix-up.
Opposites
Word family
Commonly confused: disinflation or deflation?
disinflation vs deflation
Deflation is a fall in the general price level. Disinflation is only a slower rise, so prices are still going up.
Practice
Prices are still rising, but only 2% a year instead of 8%. Economists call this ___.
Choose one answer.
Disinflation is a slowing of price rises. Deflation would mean prices are actually falling, which is the tempting wrong answer.
Make it your own
Write a sentence using “disinflation”, then check it and compare it with the examples above.