[4][5] The term was first coined in 2003 by F. Osborne Brown, a senior financial analyst at Phoenix Investment Group, and has later been widely used in the media.
[6] Biflation is an unusual, yet temporary, situation taking place in a fragile economy.
[9][10] On the other hand, a depressed economy leads to an increase in unemployment and a decrease in the purchasing power of the population.
Therefore, people usually buy the most essential goods, and the demand for long-term assets purchased on loans (houses, cars, capital equipment, and other typically debt-based items) is falling.
As a result, the official inflation rate does not reflect the real rise in the cost of living for the low-income population.