Deflation in UK for the first time in the last 50 years since 1960, with an inflation rate of minus 0.4. What does Deflation mean to the public well the good news is that the cost of living has become cheaper, this has a darker side also the economy will take a longer time to recover. Deflation leads to reduction in price of goods and services, which prompts the buyers to wait for a longer period to buy anticipating much cheaper prices. Deflation prevents Monetary Policy of the government from stabilizing the economy.
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