Meet the Flations

Meet the Flations Family: Inflation, Deflation, Disinflation, Hyperinflation, and Stagflation.

Hello. My name is Inflation. I know, I know. Yall know about me. Im an icon, a celeb, Im front-page news. Today, however, is not just about me - today is the day Ill be introducing you to the rest of the clan. Welcome, dear reader, to the Flations Family. Sit back, relax, and enjoy the tour. 

Lets start with the best part - me. My name is Inflation. You know when the prices of goods and services increase and everyone starts losing their minds!? Well, that was . . .Me. Mwuahahahaha!

Next up, my twin sister: Deflation. As with most siblings, we are nothing alike. Truth be told were exact opposites. Deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. There are currently only three countries with deflationary rates Rwanda (-2.0%), Chad (-0.5%), and the Maldives (-0.2%).

Next up, my dad: Disinflation. Were quite alike, but hes picked up some grey hairs along the way. Fair enough experience does count for something. I guess. Disinflation is a decrease in the rate of inflation a slowdown in the rate of increase of the general price level of goods and services. For example, inflation 2020: 5%, 2021: 4%, and 2022: 3%.

Next up, Mommy: Hyperinflation. Mommy is very strict. There are only two rules in our house: 1. Only speak when you are spoken to, and 2. Do NOT upset mommy. Shes like me, but when she goes off, she completely goes off the rails. Hyperinflation is a very high and typically accelerating inflation. Some countries that experienced hyperinflation in 2021 include Venezuela (1,588%), Sudan (359%), Zimbabwe (98%), Yemen (64%), and Argentina (48%).

Finally, the odd one out. Every family has one, and unfortunately, we are no exception. Introducing the black sheep in the family - my uncle: Stagflation. My uncle mostly keeps to himself but every now and then he has a relapse and then everything is bad - all at once. Stagflation is a situation in which the inflation rate is high or increasing, the economic growth rate slows, and unemployment remains steadily high. Many countries around the world are currently facing stagflation fears. Governments are trying their best to juggle sustainable economic growth and high inflation levels.

Aaaaaand that's a wrap!