Deflation

Deflation is a rare and unusual economic phenomenon where there is a sustained decrease in the general price level of goods and services in an economy over a period of time. It is measured as an annual percentage decrease in the CPI. Deflation can be caused by various factors, including a decrease in the money supply, a decrease in aggregate demand, and improvements in productivity. Deflation can have negative effects on the economy, such as reducing spending and investment, and increasing the burden of debt.