What is negative inflation?

Negative inflation, also known as deflation, occurs when the general price level of goods and services in an economy decreases over time. This means that the purchasing power of money increases as goods and services become cheaper. Negative inflation is the opposite of inflation, which occurs when the price level of goods and services increases over time. While deflation may seem beneficial to consumers, it can be problematic for the economy as a whole as it can lead to reduced consumer spending, lower economic growth, and even job losses.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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