Biflation
When some prices are rising (inflation) while others are falling (deflation) in the same economy at the…
In plain English
When some prices are rising (inflation) while others are falling (deflation) in the same economy at the same time.
Biflation is a split economy. Everyday essentials like food and fuel might be climbing while big-ticket assets such as housing are sliding. People feel squeezed from both sides.
It makes a central bank's job awkward, because raising rates to fight one problem worsens the other. The term is not used much, but the idea helps explain mixed inflation readings.
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