Mario Tama / Getty Images Deflation is when prices decrease over time. It stands in contrast to inflation, which is when prices rise. Deflation can be driven by many different factors, including ...

Deflation is an economic phenomenon characterized by a general decline in prices for goods and services. Unlike inflation, where prices rise, deflation can lead to a decrease in consumer spending ...

Deflation is a problem because it gives people little incentive to spend right now, in expectation of lower prices. This tends to drag down consumption, which is an important component of economic ...

The second graph, in which the slope of the line actually becomes negative, illustrates a period of deflation. Recessions (or more minor economic contractions) can also lead to disinflation as ...

China is experiencing deflation, with consumer prices dropping by 0.7% and producer prices decreasing by 2.2%. The surplus industrial capacity and reduced consumer spending are contributing to ...