Ever since I was a teenager,I have have experiencing inflation and deflation in reality. Meanwhile,I have never been so familiar with deflation the way I do with inflation. So my familiarity with inflation since my teenager days were always if I bought for example 5 chewing gum sweets with #1 naira then and after a while went again thinking to buy the same quantity of sweets with the same amount, I will just found out that I was given 3 chewing sweets instead of normal 5 chewing sweets. Not until later that as time passes by that came to learn about what inflation and deflation means on paper, which meanwhile in reality u have been experiencing it for quite a while.
What if price inflation starts to deflate? What will happen to prices of goods and services?
Inflation is the increase in price of goods and services while deflation is the decrease in prices of goods and services. They are just opposite to each other. So what if the prices of goods and services start to deflate, what will not happen to the prices of goods and services that have already inflated?
Deflation scenerio in Nigeria economy.
I wouldn't want to talk about the deflation may happen in the world at large because I am not an economy expert but I can say little about the scenerio in Nigeria economy concerning deflation. With what I have experienced so far with my familiarity with Nigeria economy, when deflation happens, what happen to already inflated price of goods and services in Nigeria economy? In Nigeria, I have never experienced where the already inflated price of goods and services go back to where inflation of price of goods and services kickstart.
The best that could happen is that, the price of goods and services would rather remain stagnant than deflating to where the inflation of the price of goods and services started.
