Disinflation
MacroDefinition
Inflation falling but still positive — prices rising more slowly than before. Different from deflation (prices actually falling). The Fed's typical recovery target after high-inflation episodes.
2022→2024 was a textbook disinflation (CPI fell from 9% to 3% YoY). Disinflations bond rallies — long-duration Treasuries gain as inflation expectations fall and rate-cut hopes rise.
2022→2024 was a textbook disinflation (CPI fell from 9% to 3% YoY). Disinflations bond rallies — long-duration Treasuries gain as inflation expectations fall and rate-cut hopes rise.