
Reports Shows that it is Necessary to Differentiate between Deflation and Disinflation in 2023
By Shubhendra Anand , 04 April, 2023
With inflation report slightly hotter than expected showed that prices of consumers in the United States have risen by 6.4 percent in the past twelve months. According to the reports, it is the lowest annual increase since October 2021. Again, it is the seventh consecutive month of decreasing year -over-year inflation, even after continuing the disinflationary trend.
People are having the view, that “inflation is cooling”. But when the question arises, “will the prices be back to normal”? But it is important to find out what is the right answer to this. To answer it, we should understand the difference between disinflation and deflation. Disinflation is happening in the global economic market currently. It means a deceleration of prices, that is the prices increases. If the overall price level has to come down then it is necessary for the inflation to drop down below zero. And this would indicate deflation.
The organisation Fed wants inflation to drop down with a goal of 2 percent inflation and not deflation. Because most of the time deflation only creates problems on its own.
According to the reports, the rate of inflation will come down quite significantly from its June 2022 records. Whereas the consumer prices continue to climb. Thus the report reveals that, the supply chain disrupts and recedes global crises. But the overall prices will always remain elevated.US Inflation to Stay Well Above Fed's Target

Latest News

China rightfully takes center stage in progress in ultra-fast charging EV batteries. As it appears, a Chinese electric vehicle manufacturer has emerged as a clear industry leader by developing the fastest charging battery in the world that can go…

Chinese market goes through significant economic changes in 2024. Globally, Chinese brands are climbing the ladder higher in the market. A 2024 survey shows the performance of some Chinese companies with the highest brand value. These companies help…

There is a global race to clean energy sources because of climate change in 2024. However, there is a danger that the impending metal supply crisis will offset this gain. The move to renewable energy technologies greatly depends on critical minerals…

Indian economy is facing new challenges at the end of the month of 2024. India's gross domestic product (GDP) expanded to 6.7 percent in the second quarter of 2024. From April to June 2024, the Indian market began to shrink continuously. It led to a…

Global oil demand reports show unbalanced statistics due to different analyses in two consecutive months of 2024. The International Energy Agency (IEA) states that global oil demand will decline by 2030. The report explains that fossil fuel demand…

Head Research