The purchasing power of money goes down when there is high inflation as the prices of various commodities rise, we can purchase less and less amount in the same price.

All the above options can be the reasons for deflation.

Aging population and tight monetary policy are some of the reasons for deflation in Japan apart from falling asset prices during the given period.

Disinflation is not the same phenomenon as deflation. Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

$x=y^3$ --------- (i)

$\begin{array}{ccccccc}\text{Commodities}& A& B& C& D& E& \text{Total}\\ \text{Price in 2000 (Rs.)}& 15& 10& 5& x& 23& 53+x\\ \text{Price in 2006 (Rs.)}& 9& y& 3& 9& 20& 41+y\end{array}$

$\left(\frac{3}{4}\right)\ast (53+x)=(41+y)159+3x=164+4y$
3x - 4y = 5 ------(ii)
Putting the value of x from (i) into (ii), we get
$3y^3-4y-5=0$
Clearly y lies in the range of (1, 2).
Thus, x can lie in the range of (1, 8).

CPI reflects retail inflation.

Look at the table below:

$\begin{array}{cccccc}\text{Item}& \text{Price in 1997 (P0)}& \text{Price in 2011 (P1)}& \text{Quantity}& \text{Price relative =R =}& \text{Weighted}\\ & & & \text{consumed in 1997 (W)}& \left(\frac{P1}{P0}\right)& \text{Price relative = WR}\\ \text{Rice}& 2& 3& 24& \frac{3}{2}=1.5& 1.5\times 24=36\\ \text{Cotton}& 4& 5& 14& \frac{5}{4}=1.25& 1.25\times 14=17.5\\ \text{Sugar}& 6& 9& 8& \frac{9}{6}=1.5& 1.5\times 8=12\\ \text{Wheat}& 10& 12& 4& \frac{12}{10}=1.2& 1.2\times 4=4.8\\ \text{Other Cereals}& 5& 5& 8& \frac{5}{5}=1& 1\times 8=8\\ \text{Total}& & 58& & & 78.3\end{array}$
$P01=\frac{\sum WR}{\sum W}\ast 100=\frac{78.3}{58}\ast 100=135$

Given, CPI in 1999 = 54

CPI in 2000 = 59

Rate of inflation $\left(\%\right)=\left[\frac{\text{(CPI in 2000 - CPI in 1999)}}{\text{CPI in 1999}}\right]\ast 100$

$=\left[\frac{(59-54)}{54}\right]\ast 100=9.26$