"The Complexities of Inflation: Exploring Disinflation, Deflation, and Rising Prices"

Disinflation and deflation are not the same for the economy. Disinflation refers to a decrease in the rate of price increases, while deflation means prices are actually falling. Disinflation allows the economy to continue moving forward, while deflation can lead to reduced consumer spending and layoffs. The Federal Reserve aims for a mild inflation rate of 2% annually to support economic growth. Although consumers have experienced elevated inflation in recent years, wages are starting to catch up, which is a positive sign.