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this post was submitted on 07 Aug 2023
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Inflation is not prices, it's a rate of increase of prices. Even if Inflation is at 0%, prices won't decrease, 0% mean prices stability. To see prices diminish, Inflation would need to be negative, in that case it's depression.
Actually deflation, depression is a reduction in the total throughput of a country for a prolonged period (not stational).
Inflation attempts to measure the decreasing value the of currency as observed over time. The change in price across a certain basket of goods is the proxy used to determine that.
All else equal, a decline in value of the currency means that price will rise. However, there are two sides to every transaction. The thing on the other side may also decrease in value. If that other thing decreases in value faster than the currency, then it is possible for inflation to be >=0% and for the price to still fall.