It is deflationary. I have 1€, I can buy one loaf of bread with it today. One year from now: Inflation - I can buy 0.5 loafs of bread. Deflation - I can buy 2 l

It is deflationary. I have 1€, I can buy one loaf of bread with it today. One year from now: Inflation - I can buy 0.5 loafs of bread. Deflation - I can buy 2 loafs of bread.