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it’s the state in which general price levels are still increasing but at the slower rate.
The MIT Dictionary of Modern Economics defines deflation as "A sustained fall in the general price levelâ€. Investorwords.com defines deflation as “A decline in general price levels, often caused by a reduction in the supply of money or credit...
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Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy...
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