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Disinflation refers to which of the following?

easy Q12 of 15
Economic Awareness - Sectors of Indian Economy
Disinflation refers to which of the following?
APrices falling continuously over time
BInflation rate decreasing but still positive
CInflation rate increasing rapidly
DPrices remaining unchanged for a long period
Step-by-Step Solution

  1. Step 1: Understand disinflation

    Disinflation is a reduction in the rate of inflation, meaning prices rise but at a slower pace.

  2. Step 2: Analyze options

    Only the option stating inflation rate decreasing but still positive correctly defines disinflation.

  3. Final Answer:

    Inflation rate decreasing but still positive → Option B

  4. Quick Check:

    Disinflation = slower positive inflation rate ✅
Quick Trick: Disinflation = inflation slowing down, not falling.
Common Mistakes:
  • Mixing disinflation with deflation (price fall).
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