Encyclopedia of Investment Terminology

Return to Stock Market and Investment Encyclopedia Index


The term Disinflation refers to the phase of the business cycle where prices stop increasing, and therefore a decrease in the rate of inflation occurs. It is important to note that although prices have stopped increasing inflation still exists due to the fact that the price level of goods is above the zero percent inflation rate. Should prices continue to fall below the zero percent mark, deflation would occur.

Return to Index

Copyright 2008 StockDic.com
All Rights Reserved.