> I think some of the deflationary pressure is from technological innovation (for example, a mobile phone does everything that thousands of dollars worth of equ

> I think some of the deflationary pressure is from technological innovation (for example, a mobile phone does everything that thousands of dollars worth of equipment would do 20 years ago). Some of it is due to the deflationary pressure of globalization and the exportation of goods production to less developed countries (namely China). That trend won't last much longer though as those countries become more affluent (if it hasn't already reversed). The three main drivers of deflation: > But Inflation is not inevitable. There are numerous countervailing forces that have been at work for much of the past 50 years. The three big Deflation drivers: 1) Technology, which creates massive economies of scale, especially in digital products (e.g., Software); 2) Robotics/Automation, which efficiently create more physical goods at lower prices; and 3) Globalization and Labor Arbitrage, which sends work to lower cost regions, making goods and services less expensive. * https://ritholtz.com/2021/02/stop-stressing-about-inflation/ https://ritholtz.com/2021/02/stop-stressing-about-inflation/ For (3): the entire continent of Africa can be further developed. Generally: > Put into this context, Inflation is periodic, driven by specific events; Deflation is consistent, the background state of the modern economy.