Fears of deflation are rising in developed economies like the euro area and Japan. The European Central Bank is concerned about deflation, while Japan has been struggling with it for over a decade. Hungary could also be affected by deflation in the euro area. Deflation happens when prices keep dropping for a long time, leading to economic problems like a debt spiral. If prices fall a lot and people expect them to keep falling, it can be dangerous. Central banks may have trouble fixing the situation if they can't lower interest rates anymore.