Deflation and depreciation?

Question

help me to clear out the differences. thanks

Answer 1

Deflation is the drop in price or value on an "unconsumed" commodity.  A good example would be a 2008 automobile that's new, but is marked down because the 2009 models are out.

Depreciation is the loss of value over time or use, of something after it's been purchased.  Using the car example again, it's the value of the car that has been driven and is now "used".