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deflation
[uk_rpi] [deflation]

For many years, inflation has been of huge concern, in the UK and worldwide. During part of 2009 but no longer, the main concern was “deflation”. Well, what's not to like about prices falling, something to which we're used with electrical goods and clothes? If Japan's miserable decade plus is anything to go by, plenty.

If prices are expected to fall, then the natural response, at an individual level, is to delay buying anything until next year, or for longer. At times of economic stress, such as when the terms for Brexit must still be finalised, and we are suffering from Corona,  that is even more likely to happen. If, however, everyone were to do that, then economic activity would spiral downwards. For more information, look here.