<p>The inflation rate is the rate of change in the price level. </p>

<p>A lower - but positive - inflation rate (say from 3% to 2%) still results in higher prices -this is typically called disinflation, and highlights the fact that lower inflation doesn’t necessarily mean lower prices.</p>

<p>A negative inflation rate print (like -1%) implies the price level did actually decrease - typically referred to as deflation.</p>

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2019-07-28T11:56:57.667Z
2019-07-28T13:42:09.557Z
2019-07-28T13:42:09.557Z
RA334
<p>Having a lower inflation rate is not the same as having lower overall prices.Why?</p>

<p>lower CPI(inflation) means price levels in country decreases?</p>

<macroeconomics>
Having a lower inflation rate is not the same as having lower overall prices?
Josh
# Having a lower inflation rate is not the same as having lower overall prices?

(Asked by: username_0 on 2019-07-27)

Having a lower inflation rate is not the same as having lower overall prices.Why?

lower CPI(inflation) means price levels in country decreases?

**Tags:** macroeconomics


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## 1 answers

### Answer by username_1 on 2019-07-28. Score: 2

The inflation rate is the rate of change in the price level.

A lower - but positive - inflation rate (say from 3% to 2%) still results in higher prices -this is typically called disinflation, and highlights the fact that lower inflation doesn’t necessarily mean lower prices.

A negative inflation rate print (like -1%) implies the price level did actually decrease - typically referred to as deflation.


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