DEFINITION: Disinflation is a decrease in the rate of increase of prices, or, in other words, a slowing in the rate of inflation.

ETYMOLOGY: “Disinflation” is derived from the Latin “dis,” meaning “separately,” “apart,” or “in the opposite direction,” + “in,” meaning “in” or “into,” + “flāre,” meaning “to blow.”

USAGE: Disinflation should not be confused with deflation, which means an absolute decrease in prices over time from some reference point.