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Deflation

Decreasing prices over time. The deflation rate is usually measured per year. In the United States, deflation is historically rare. The government does what it can to ensure widespread deflation does not occur as it would potentially lead to spending decreases since people would wait for things to become less expensive.

News On Deflation
ECB keeps rates on hold, eyes asset purchases

08-08-2014| Source:CNBC

The central bank's inaction comes despite a shock fall in inflation in July, which reignited concerns that the region could be heading for a period of growth-sapping deflation.

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