Very low inflation and deflation pose qualitatively similar economic problems, though the magnitude of the associated costs can be expected to increase sharply as deflationary pressures intensify. What are these costs? In practice, the potential harm of very low inflation or deflation depends importantly on the economic environment in which it occurs.
But if the accuracy of our economic forecasts is inadequate, it will be hard to maintain monetary policy efficiency or communication consistency. This is why we need to redouble our efforts to strengthen our forecasting capabilities.