Deflation: Is the decline in the prices

Deflation is the decline in the prices of goods and services, occurring when the rate of inflation falls below 0%. It is measured by tracking the average change in the prices of a selected basket of commodities and services over time. When prices fall, it’s called deflation. Deflation can spell bad news for you and your money. Deflation is a sustained decrease in the general price level of goods and services in the economy, leading to economic stagnation, and potential job losses. Deflation occurs when the inflation rate falls below 0% and becomes negative. While inflation reduces the value of currency over time, deflation increases it.