|In simple terms, deflation is a decrease in the general price level of goods and services, a trend that increases the real value of money over time. In contrast, inflation is a sustained increase in general price levels over a period of time, a trend which reduces the real value of money. Even more simply put, during a deflationary period one is able to buy more for their money, and during an inflationary period, less.|
For those of us making a living manufacturing and/or selling passive components – capacitors, resistors, inductors, ferrites, etc. – we well know how deflation works. While the norm in the world around us is an increase in the prices of the things we buy, the price of the things we sell for a living trends the opposite direction....Continue Reading >>
Click on a raw material to see a chart of its cost trend.
|Enter your email address below to receive email updates whenever we publish new content.|