Generally once prices rise, they don’t go back down.
Most of the time deflation is a signal of a struggling economy. Disinflation — when prices still increase, just more slowly — is the goal.
Inflation has fallen sharply in the last year and a half, but prices haven’t come down. Economists say that’s not a bad thing.
Wholesale prices rose 0.7% in January, showing that inflation is sticking around.
Slowing inflation isn’t as dangerous as prices dropping for a long period of time. But it’s important to keep disinflation in check.
