Low Inflation In The United States

Deflation is defined as a fall in the general price level. It is a negative rate of inflation. However, deflation cannot necessarily be disadvantageous, but occasionally deflation/low inflation can cause economic productivity and can also cause high unemployment for certain periods. Even though one may think that a general fall in prices can be a good thing, as it leads to greater consumer purchasing power, a persistent fall in prices can however bring negative effects towards the economic stability and growth. (Cox Jeff , The US is closer to deflation than you think,2015)

The United States in January 2015 had a deflation that has not happened since 2009. According to the labour department there was decline of -0.1% in the prices of goods