deflation Flashcards
(2 cards)
1
Q
what is deflation
A
Inflation below 0, general decline in prices of goods and services
2
Q
what is a real life example of deflation
A
CPI inflation rate turned negative in April 2015 (-0.1%).
Falling oil prices led to cheaper fuel and energy costs.
Supermarket price wars between Aldi, Lidl, and the Big Four (Tesco, Sainsbury’s, Asda, Morrisons) drove grocery price deflation.
