Deflation is generally defined as the generalized decrease in the prices of goods and services, which is when the inflation rate reaches a negative value. In the case of inflation, the value of the currency decreases, meaning that it loses purchasing power over time.

While in the case of deflation this increases because it has a fixed supply, which generates a form of shortage of money. Deflation can be seen as the general decline in the prices of goods and services, but can also be applied to the increase in the purchasing power of a currency, such as the euro or the dollar