Definition of relative deflation

Deflation occurs when the annual inflation rate falls below zero per cent. The term “relative deflation” is generally used to describe an economy with an inflation rate, which has not necessarily descended into negative territory, but is markedly lower than comparable economies.

For instance, Japan’s economy is said to have suffered “relative deflation” in relation to its major trading partners during the 1990s. [1]

FT Articles & Analysis

No articles are associated with this term

Related Terms