Inflation was a word before deflation was

Disinflation, a decrease in the rate of inflation, is different from deflation

Disinflation happens when prices are still going up, just at a slower rate. Prolonged disinflation is also often accompanied by a recession, making it painful for consumers.

The highest inflation ever recorded in US history was estimated at 30% in 1778, just after the Revolutionary War.

Inflation is a monetary phenomenon in which consumers see a broad rise in the prices of goods and services across the economy over time

Sustained periods of inflation are often caused by central bank policies including low interest rates or increased money supply. With more money chasing the same number of goods and services, prices tend to rise and the value of a single dollar drops.

'Good deflation' happens when prices naturally track with supply, meaning prices change gradually

This tends to make products and services more affordable and normalizes the standard of living. Bad deflation usually happens when there are sudden changes to either supply or demand. Near-zero [interest rates helped create the real estate bubble that sparked the Great Recession when it crashed](https://www.youtube.com/watch?v=LMo9mD8j7IA&t=91s) Because deflation distorts the value of money, deflation is particularly harmful for borrowers. Low interest rates made it easy for businesses and everyday people to take on enormous debt, which exacerbated the effects of the recession.

US inflation can generally be split into to two periods—before and after the Federal Reserve

A central bank itself does not mean significant inflation will occur, but economists generally point to factors like two world wars and the printing of money to finance the US federal deficit as primary drivers of price increases.

Economists define deflation as a sustained decline in prices across an economy

Deflationary periods are characterized by broad, significant price declines. The Federal Reserve can monitor deflation by tracking prices through price indexes, such as the Consumer Price Index (CPI), which characterizes the average costs for consumers each month.

Falling demand and lower costs of production cause deflation

"Falling demand" refers to anything that changes someone's willingness to spend money on goods and services. Global recessions, fears of a worldwide recession, and a fall in the money supply are all factors that could lead to falling demand. Likewise, lower production costs allow companies to increase production, which can lead to a surplus in supply.

The Great Depression is one of history's most notable periods of deflation

The stock market crash of 1929 helped trigger a period of deflation in the United States by creating a drastic decrease in the total money supply. Because of the United States' central role in the world economy, virtually every single country was impacted by the recession.

The world's most famous case of deflation happened after Black Thursday

While the details are not fully agreed upon, many economists point to the Federal Reserve's tightening of the money supply as a prime culprit, leading to a significant deflationary spiral.

The word 'influenza' comes from a 15th-century Italian belief in the stars

In Renaissance Italy, epidemics were thought to result from the influence of natural disasters or celestial bodies. The illness was named "influenza", meaning “influence” in Italian.

Read former Fed chair Ben Bernanke's 2002 speech about preventing deflation

Very low inflation rates in the early 2000s in the United States and a worsening recession in Japan sparked some domestic concern over the threat of deflation. While Bernanke wasn't Chair at the time of the speech, he emphasized the Fed's role in preventing deflation.

Inflation explained in under 3 minutes

Keep seeing inflation in the news, but don't have a great grasp on what it means or how it works? This overview from 1440 breaks down how economists think about inflation, what it means for the average consumer, and how governments attempt to keep rising prices in check through various policies.

The psychological aspect of deflation makes it difficult for policymakers to stabilize the economy

That psychological aspect is referred to as "the deflationary spiral." When prices start decreasing, people tend to hold on to their money to pay the lowest prices. But as prices start stabilizing, people resist increasing prices. (Some users may experience a paywall.)

Technological advancements are historically deflationary

Technological innovation can drive down costs and prices for businesses, which can increase real wages for employees. As a result, people have more money to spend and demand increases.

The Federal Reserve can set interest rates below zero

Interest rates, the cost of borrowing money, are the primary tool the Federal Reserve uses to control inflation. During periods of deflation, setting interest rates below zero penalizes saving, encourages banks to lend more and moves more cash through the economy.

China had an inflation rate of -0.4% in August 2025

As opposed to other G20 countries that are largely struggling with high inflation rates, China is facing deflation. Sluggish growth in the country's once booming real estate market is just one glimpse into the consumer slowdown triggering deflation.

Japan's 1990s deflation followed the country's fastest growth period

The end of World War II ended Japan's isolation in the global economy, prompting what's now called the "Japanese Economic Miracle." From the 1940s to the 1980s, Japanese policy makers enacted ultra-loose monetary policies that pushed a ton of cash into the market and fueled rapid growth. But these policies ultimately helped create a bubble and sent the country into a deep period of deflation.

Prices can still feel high even if inflation is slowing

This is partly because a recent spike in inflation raised prices permanently, so even though the pace of price growth has slowed, prices have still gone up for good.

The word ‘fantasy’ wasn't used to describe the genre until the 20th century

The word—at least as a word used to describe fiction—didn’t appear in the Oxford English Dictionary until 1949. Scholars believe that’s due to the arrival of the Magazine of Fantasy and Science Fiction, an influential publication, and the rise in fantasy’s popularity following World War II.

COVID-19's shock to employment rates sparked some economists to fear deflation

COVID-19 simultaneously disrupted the supply chain and the labor market. Since the unemployment rate had hit record highs, some economists were worried that the supply chain would recover before the labor market. If that had happened, businesses would have been producing goods, but no one would have been able to buy them because they wouldn't have the disposable income to do so.

Fast-food prices have increased more over the past 10 years than both full-service restaurants and inflation.

US cities where inflation is rising the most

WalletHub compared 22 major metropolitan areas to see how inflation has risen in the last year using the Consumer Price Index, which describes the average cost of a basket of goods. As of April 2024, Honolulu, Hawaii, clocked in with the greatest year-over-year change in prices, with inflation close to 5%. See the full list here.

You can find the value of a dollar dating back to 1635

The value of a dollar hasn’t been consistent throughout history. An inflation calculator lets you compare the value of dollars from any two years over the past four centuries.

'Tulip mania,' the 1630s Dutch craze where rare bulbs were briefly traded like luxury assets, may have been the first financial bubble—and it still shapes markets today.

Europe’s first recorded influenza pandemic swept the continent in 1580

The 1580 influenza pandemic, traced from Asia to Africa and into Europe, became the first flu outbreak clearly documented across the continent—killing tens of thousands and highlighting influenza’s potential for rapid global spread.

Tinnitus is derived from the Latin verb tinnire, meaning to ring

Read the entry in The Physical Dictionary by Stephen Blankaart, from 1693, where the word first appeared in English.

Is Domino’s pizza inflation-proof?

A Big Mac Extra Value Meal is nearly $11 in 2025, compared to $4.59 in 1993. A Taco Bell crunchy taco costs $1.79 today, but was only 59 cents in 1990. Inflation impacts the price of many fast-food items—but the price of a Domino's pizza hasn't changed much at all in the past two decades.

'Loveflation' is making dating more expensive and less frequent

A survey found that more than half of Americans are going on fewer dates due to rising costs, with 27% stopping altogether. Gen Z and millennials are the hardest hit, with 62% reporting changes in their dating habits due to inflation.

Venezuela is experiencing hyperinflation

Consumer prices in the country have risen at a fairly quick rate since 1983, but a series of policy miscalculations, falling oil prices, and other factors have sparked extreme levels of inflation since 2017, with citizens losing faith in the value of the national currency.

The Federal Reserve targets 2% inflation

It’s an arbitrary number originating from an offhand comment made by a New Zealand policymaker. The real objective is to maintain predictable prices for businesses and families to plan around while avoiding the dangers of deflation.

In the 1970s, the US experienced a period of stagflation

It was characterized by high inflation, slow economic growth, and high unemployment. The crisis was triggered by a combination of factors, including loose monetary policy that spurred excess demand and spiraling oil prices caused by an OPEC embargo in 1973.

President Trump's 2025 Tariffs added less inflationary pressure to the economy than expected in their first year

A year after the so-called "Liberation Day" in April 2025, tariffs have had a milder effect on inflation than feared—core goods prices have added only about 0.2% to the headline Consumer Price Index—but persistent policy uncertainty has rattled small business owners, who say the constant back-and-forth makes long-term planning difficult.

In President Trump's first year of his second term, inflation fell from 3% year-over-year in January 2025 to 2.7% in December

While the price of eggs and bread went down over Trump's first year in office during his second term, coffee and beef prices rose. Utility bills and home insurance continued to surge, but mortgage rates, rent, and home prices began to stabilize in 2025.

The word 'mortgage' comes from medieval French, meaning 'death contract.'

Raising interest rates can help control inflation

While controlling a complex and dynamic economy is difficult, interest rates—more specifically, the rate at which banks lend each other money overnight—are a powerful tool. Generally, raising the rate makes purchases more expensive and cools an overheated economy.

The bond market dates back to the 1100s in Venice

In the early 1800s, bonds were used to fund US railroads and canals in Great Britain. “Liberty Bonds” were sold during both World Wars in the 20th century. Learning about the early and modern history of bonds can offer a glimpse into how the modern bond market came to be.

Stablecoins could give people in high-inflation economies access to stronger currencies

Specifically, stablecoins could provide a way to make sure these funds remain valuable during times of volatility. Some examples of people without access to the US dollar using stablecoins as a store of value have been observed in Venezuela.

The term ‘mortgage’ was born out of the French word for ‘dead pledge’

Borrowing money to buy a house has been a global practice since the Romans in the fifth century BCE. But before the mortgage, there was the “dead pledge,” which labeled the property as “dead” to the borrower until they paid off their loan to the lender.

The history of tariffs stretches back to ancient Rome and Greece, where taxes were levied on imported grain and textiles to control trade.

An updated, comprehensive tracker of global inflation

This tracker provides a visual narrative of inflation rates, central bank policies, consumer price breakouts, and more from nations across the globe.

Was WWI really the first world war?

Was World War I the first true international conflict? This article thoroughly explores the meaning of the term world war. It also suggests a few previous conflicts, some of which involved battles in the Americas as well as Europe, that might have been more accurately described as a "world wars."

'Graffiti' comes from the Italian for 'a scribbling'

The word was first used in 1851 to describe the ancient inscriptions on Pompeii's walls. "Graffiti" is the plural form of "graffito," which means "a scribbling."

Circulating libraries helped the novel's popularity surge

As literacy rates began to rise in the 19th century, so did the demand for reading materials. The only problem? Newspapers and books weren’t cheap, and newly literate middle-class families struggled to afford literature. That changed when booksellers began offering small fees for patrons who decided to borrow rather than purchase books. This was eventually called a circulating library, an innovation that would satisfy the burgeoning readership of novels and increase literacy rates further.

'Deinfluencing' explained

You’ve probably heard of influencers, but have you heard of “de-influencers?” Basically, the de-influencing trend started when creators began making videos about products you shouldn’t buy, rather than sponsored content promoting things you should purchase. Comedian Taylor Tomlinson recently cracked some jokes about the trend, and its companion “under consumption-core.”

The word 'jazz' evolved from slang for 'energy' and was used to describe a baseball pitch before it came to mean a genre of music.

The word 'restaurant' comes from the Latin for 'restore'

Many believe the word came into use thanks to Boulanger, an 18th-century Parisian soup vendor. According to legend, his shop claimed it served "bouillons restaurants," or "restorative broths."

Why airships are making a comeback as a cheap, fast transport solution

Airships, including blimps, have had a pretty bad reputation since the tragic incendiary crash of the Hindenburg in New Jersey in 1937. But an intense competition is ongoing between airship manufacturers looking to develop the trucks of the sky: a...

The printing press spread novels widely

Johannes Gutenberg's invention of the printing press in 1440 changed how writing was reproduced. It allowed multiple manuscripts to be copied via movable type rather than by hand, making more literature more widely available. Over time, that change caused literacy rates to rise, creating a market for even more literature.

Why were tanks invented?

Tanks first appeared in warfare in World War I. As old methods of conducting battles proved ineffective, the idea of an armored vehicle that could traverse almost any terrain and carry a cannon came to fruition. World War I provided the impetus and finances to develop the modern tank. Learn more in this short but detailed article.

The word 'dystopia' was first used in 1868

John Stuart Mill, an English philosopher, economist, and politician, uttered the word at the House of Commons while criticizing what he considered to be the government’s insufficient land policy for the Irish, saying, “What is commonly called Utopian is something too good to be practicable; but what they appear to favour is too bad to be practicable.”