Disinflation

Disinflation occurs when the rate of inflation decreases over time, but prices are still rising. It is a situation where the inflation rate is slowing down, but not yet negative. Disinflation can be caused by various factors, including a decrease in aggregate demand, an increase in productivity, and a decrease in the money supply. Disinflation is often seen as a positive development, as it can help to reduce the cost of living and increase the purchasing power of consumers.