Disinflation is slowing down the increase in inflation rate by not changing the prices. This activity is usually conducted during healthy economic conditions. When the inflation rate for the current year increases at a slower rate than the previous one. Deflation is a decline in the overall prices in other word, negative inflation which is usually done by reducing the money supply it is a bad thing in modern economics and it increases unemployment, as a result of closure of business...cheers:))

Deflation - a lowering of the overall price level in the economy. Prices are falling. Think of this as negative inflation. What cost 100 dollars last year only costs 90 dollars this year. Disinflation - a slowing of the rate of inflation in the economy. Prices are still increasing. Last year prices increased by 10%. This year prices only increased by 5%. Even though prices are still going up, the rate of increase is slower.

Think of "disinflation" as a decrease in the rate of inflation. Otherwise, you could consider the two words to be equal.