Controlled inflation around 2% is better, It helps the growth of the economy, reduces the weight of the debts and encourages people to consume, instead of holding the money. Already deflation looks good in the beginning because the prices fall. But in practice it discourages the consumption, increases the weight of the debts and can cause years of stagnation, like happened in Japan.
At first glance, deflation does seem like a good thing. After all, everyone wants prices to go down so they can buy more with the same amount of money over time. However, in reality, deflation actually signals problems within the economy itself, such as the possibility that demand is lower than production, or something similar. Even in the real estate sector, deflation will simply discourage people from investing. And if this situation persists, an economic depression could very well occur.
On the other hand, controlled inflation clearly indicates growth, high buyer interest, stable purchasing power, and will continue to attract more people to the investment sector because when the price of a good or property rises, it means there’s an opportunity to make a profit by investing in it. And it appears that, in fact, the central bank has been targeting controlled inflation all along.
