Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation’s gross domestic product over time.
Last month the Federal Reserve announced that it was adjusting its monetary policy in a bid to push inflation higher.
Recent jobless claims data show that the labor market continues to suffer from an unusually high pace of new layoffs. New filings for unemployment benefits rose 870,000 last week. The ongoing surge in claims represents a substantial risk for the economy and threatens to fuel the disinflation trend.
Michael Feroli, JPMorgan Securities chief U.S. economist, says the jury is still out when it comes to potential GDP growth and unemployment will probably be elevated for several quarters to come. He speaks on “Bloomberg Surveillance.”