Disinflation is a temporary slowdown in the rate of price inflation and is used to describe instances of a slight decrease in the rate of inflation in the short term.
Unlike inflation and deflation, which refer to the direction of prices, disinflation refers to the rate of change in the rate of inflation.
A healthy degree of disinflation is necessary as it prevents the economy from overheating.
The danger posed by disinflation is that the inflation rate falls close to zero, as it did in 2015, reinforcing the specter of deflation.