deflation

noun

de·​fla·​tion di-ˈflā-shən 

ˌdē-

1

: an act or instance of deflating : the state of being deflated

2

: a contraction in the volume of available money or credit that results in a general decline in prices

3

: the erosion of soil by the wind

deflationary

di-ˈflā-shə-ˌner-ē 

ˌdē-

adjective

Examples of deflation in a Sentence

Economists worry that deflation will bring the country into recession.

Recent Examples on the Web

The Japanese economy has tended to stagnate in recent years, with slow wage increases as well as deflation, or the continuous sliding down of prices, rather than the inflation affecting some parts of the world. —Yuri Kageyama, Quartz, 1 Apr. 2024

Japan has experienced a much more recent bout of deflation. —Paul Wiseman, Fortune, 30 Mar. 2024

What most consumers need to see is deflation—which occurs when prices actually stop growing and start falling. —Ivan Illan, Forbes, 29 Mar. 2024

China has been battling an extended spell of deflation, with consumer prices flatlining or falling in recent months. —Hanna Ziady, CNN, 20 Mar. 2024

China faces a number of economic challenges, including a real estate crisis, deflation, unemployment, stock market volatility and a decline in exports amid geopolitical tensions. —Jennifer Jett, NBC News, 4 Mar. 2024

This could be inviting a hard economic landing, particularly at a time when the world’s second-largest economy shows every sign of having run out of steam, when a domestic commercial-property crisis seems to be intensifying, and when China seems well on the road to deflation. —Desmond Lachman, National Review, 13 Feb. 2024

As deflation intensifies, corporate and household confidence are declining. —William Pesek, Forbes, 27 Mar. 2024

In many countries, a surge in inflation has tormented consumers and policymakers, but in Japan, which more often grappled with growth-sapping deflation, the recent rise in prices has been welcomed by most economists. —Joe Rennison, New York Times, 19 Mar. 2024

Word History

First Known Use

1891, in the meaning defined at sense 1

Kids Definition

deflation

noun

de·​fla·​tion di-ˈflā-shən 

ˈdē-

1

: an act or instance of deflating : the state of being deflated

2

: a reduction in the volume of available money or credit resulting in a decline of the general price level

deflationary

-shə-ˌner-ē 

adjective