low stable inflation rate or deflation investing
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Low stable inflation rate or deflation investing

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Y1 11) Causes of Inflation - Demand Pull and Cost Push Inflation

Inflation and deflation are economic factors that investors must take into consideration when planning and managing their portfolios. Deflation is a macroeconomic condition where a country experiences lowering prices. This is the opposite of inflation, which is characterized by rising prices. An inflation rate of about 2%, with stable prices, maximum output and full employment is considered ideal in developed markets.