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Paper 1 real-world example: Disinflation in the US

The US economy is currently experiencing a period of disinflation. June’s rate of inflation in the US has fallen to 3% and the country might be seeing the end of the work inflationary period for over 40 years. The latest CPI data is evidence that the contractionary monetary policy used by the Federal Reserve (US Central Bank) has been successful in bringing inflation down from its peak in June 2022 of 9.1%.

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