🚗 🚙 Turn your trusty old car into trustworthy journalism Learn more

What's the difference between disinflation and deflation?

Dec 18, 2023
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.
You can compare changes in consumer prices to driving a car. Disinflation is like reducing  your speed, but still moving ahead. Deflation, however, would be driving in reverse.
Scott Olson/Getty Images

The producer price index hints at where consumer prices are headed

Feb 16, 2023
Wholesale prices rose 0.7% in January, showing that inflation is sticking around.
Food prices for suppliers dropped 1% month over month, according to the producer price index.
Scott Olson/Getty Images

What's disinflation, and why does it matter?

Jul 30, 2020
Slowing inflation isn't as dangerous as prices dropping for a long period of time. But it's important to keep disinflation in check.
The menu of a ramen restaurant, for instance, can illustrate inflation, disinflation or deflation.
Frederic J. Brown/AFP via Getty Images