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A general, sustained fall in prices.
Deflation is a general fall in prices across the economy, the opposite of inflation. It sounds good for shoppers, but when it lasts, people delay purchases waiting for lower prices and companies cut jobs and wages.
Japan lived with mild deflation for long periods from the late 1990s, alongside weak growth.
Central banks fear deflation because it can feed a downward spiral and makes debts heavier in real terms. That's why most aim for low, positive inflation (about 2%).