Answer :
The risk of deflation, a phenomenon associated with exceptionally slow economic conditions and characterised by falling prices and possibly declining average earnings, increases if inflation is too low.
Nearly all economists advise reducing inflation. Low inflation promotes economic development, saving, and investment, all of which support global competitiveness. Economic growth is also supported by economic stability.Low inflation is preferable since high inflation could lead an economy to deflate. Reduced pricing results in lower production and wages, which in turn leads to further price declines and further salary reductions, and so on. Low inflation is advantageous since it guarantees that prices for necessities remain consistent. Low inflation helps the economy practically everywhere, including with the GDP, borrowing costs, and cost of basic goods and services.
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