Deflation of 2.4% in October.Deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. of 2.4 percent was noted in October this year relative to October last year. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the State Statistical Office, the costs of living have been on the decline for six months. In September and August there was deflation of 1.4 percent. Deflation appears where the amount of money in circulation is smaller than the quantity of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. offered in the market and in such a situation prices drop. According to the official statistics, in October relative to August prices of fruit, vegetables and confectionary products climbed down. Prices of travel arrangements, oil derivates, cars, assorted material for home maintenance, electrical apparatuses and cosmetic products went down, too. On the other hand, prices of milk, fish and alcohol went up. In general, costs of living in October compared to August this year dropped 0.4 percent. Deflation that lasts long, according to experts, is bad news for the economy, although it is good for consumers, because it drives down prices of goods and services. It also stands for lower production and higher unemployment. |
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