Business and Inflation

Deflation is the opposite process - reducing the overall price level (negative growth). In today's economy are rare and short-term, usually the season. For example, prices for grain immediately after harvest is usually reduced. Prolonged deflation characteristic of the very few countries. Today can serve as an example of deflation, Japan's economy (within 1%). There are instances when government policies led to a long period of decline in retail prices with a gradual increase in wages (for example, in the Soviet Union in the last years of Stalin's life, and under the government of Ludwig Erhard in West Germany since 1950).