Jargon-watch: 'lowflation'
Falling prices the world over have given rise to a new word: 'lowflation'. But what on earth does it mean? Mischa Frankl-Duval explains.
Growth is slowing in emerging markets. Established economies can't getinto gear. Oil's down, again.
Prices the world over are falling. The global level of low inflation we're seeing is bad, but not half as bad as the word being used to describe it: 'lowflation'.
The term lowflation has gained traction due to "a shifting mindset in financial markets, as investors come to expect perseverant low or falling prices", said Quartz.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"When widespread, enduring price declines are seen to be the norm, it can spark a vicious cycle of falling profits, investments, jobs and income, which in turn further depress economic activity."
"The difference between that and deflation' is just a matter of degree."
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Mischa graduated from New College, Oxford in 2014 with a BA in English Language and Literature. He joined MoneyWeek as an editor in 2014, and has worked on many of MoneyWeek’s financial newsletters. He also writes for MoneyWeek magazine and MoneyWeek.com.
-
Nationwide hikes FlexPlus current account fee by £5 a month – is it worth it?
Nationwide’s FlexPlus current account is a favourite with customers, but it’s worth checking whether you are taking advantage of the perks after the monthly fee went from £13 to £18
By Katie Williams Published
-
Santander launches online pension that offers up to £1,000 cashback
Santander's self-invested personal pension offers customers cashback of up to £1,000 if they invest before 25 April next year - here is everything you need to know
By Chris Newlands Published