The term deflation indicates a phenomenon that concerns the trend of falling prices. This word indicates that prices in a particular country or area are falling.
The opposite phenomenon is that of inflation, which instead indicates that prices in that country are rising.
Deflation and inflation in Italy are measured by ISTAT, which monitors changes in some goods. The set of goods in question is called basket. The changes are calculated on the basis of indices:
- * when they are positive we talk about inflation;
- * when they are negative, we talk about deflation.
For more information on deflation and its effects on a country’s economy, we recommend that you read: What is deflation and what are its effects?
