Inflation
Prices rise. A basket costing ₦100 becomes more expensive when the inflation rate is above zero.
Understand the numbers
Slower inflation does not mean lower prices
Move the rates below. The red line shows how fast prices change; the blue line shows the price of a basket that starts at ₦100. Watch what happens when inflation slows.
Explore the difference
Illustrative two-year example
Set annual rates
The starting change in prices.
Drag below 0% to see deflation.
Starting basket₦100.00
After year 1₦108.00
After year 2₦111.24
Prices and the rate of change
Both lines are indexed to their own labeled scales so their directions are easy to compare.
Inflation rate, left scaleBasket price, right scale
Disinflation
The inflation rate falls but stays above zero. Prices keep rising, just at a slower rate.
Deflation
The inflation rate is below zero. The overall price level falls during that period.
Figures are illustrative, compounded once per year. A real inflation rate measures changes in a broad price index; individual goods may move differently. Created for public understanding by Abidemi Adebamiwa.