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Deflation: CNBC Explains

Wednesday, 10 Aug 2011 | 5:03 AM ET

If you understand inflation, deflation is simply the flip side of the coin. In fact, sometimes it referred to as "negative inflation." Like inflation, deflation is determined in relation to a basket of goods and services. What is deflation? How is it measured? Salman Khan of the Khan Academy explains in a simplified example.