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Deflation
Deflation is a sustained fall in the general price level, meaning negative inflation. While cheaper goods sound good, deflation can lead people to delay purchases, businesses to cut wages and debts to become harder to repay.
Why It Matters
Japan spent years fighting deflation, which is why central banks aim for mild positive inflation instead.
In India
India’s food prices fell year-on-year in late 2025, but overall CPI stayed slightly positive, so the country never entered deflation.
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