system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why is drop in inflation a bad thing?

There's a lot of worry in the news these days about dropping inflation (rather in deflation territory) in Europe. As a layman, I would think dropping prices would be a good thing. How in the world could it be a bad thing?
gpt
A drop in inflation =/= a fall in prices, it just means that prices rise *slower*. Deflation, however, is negative inflation, meaning prices fall in real terms. Another way to look at it is that, with positive inflation, your money will be worth less in the future, and with negative inflation, your money will be worth more in the future.

There are a couple reasons to avoid deflation.

**For the consumer**

Inflation is part of a healthy economy. Most economists regard 2% to be good. This is because inflation causes people's money to be worth less*. This motivates people to spend money, and keeps the economy in motion.

If inflation drops, prices rise slower. This isn't necessarily a bad thing. What *is* bad is **deflation**. Japan 'lost' an entire decade because of it.

You may think deflation is okay, because your money will be worth more in the future. But this is terrible for the economy. Nobody will buy anything, because if they wait, they'll get it for 'cheaper', because their money will be worth more. Beyond essentials, nobody will make any purchases, and just wait, causing the economy to stagnate.

**For the debtor**

Debtors get royally ****ed in deflation. If you owe $1000 today, you may end up owing, in real terms, $1100 next year. This discourages people from borrowing money, which reduces demand.

**Metaphor**

If $1 could get you 1 piece of candy today, or an extra piece of candy for every extra day you wait, would you buy candy frequently? Or would you wait as long as possible before purchasing?