Inflation: Related Terms

Deflation: It is the general fall in the price level over a period of time
Disinflation: It is the fall in the rate of price increase or a slower rate of inflation. Example: a fall in the inflation rate from 8% to 6%.
Reflation: Reflation is the act of stimulating the economy by increasing the money supply or by reducing taxes, seeking to bring the economy back up to the long-term trend, following a dip in the business cycle. It is the opposite of disinflation.
Depression: An Economic depression is a sustained, long-term downturn in economic activity.

Inflationary Gap: The Inflationary gap is a situation when Aggregate demand exceeds the Aggregate supply at the full employment level.

Deflationary Gap: The Deflationary Gap is when Aggregate demand is lower than Aggregate Supply at the full employment level.

Bottleneck Inflation: It creates excess demand in the economy as the supply fails to match, raising the prices.
Inflation Tax: Due to price rise, wages increase, as wage increases taxes on this increase, generates more revenue for the government.
Inflation Premium: Bonus brought by inflation to borrowers. Real interest rate (nominal IR adjusted to inflation) << Nominal interest rate (charged on lending).
Inflation Spiral: Wage-price spiral i.e. when wages press prices up and prices pull wages down.