Examples of deflation in a Sentence
Economists worry that deflation will bring the country into recession.
Recent Examples of deflation from the Web
Twitter deflation will only solve one of Twitter’s vexing trust problems.
Glendale officers were dispatched to the intersection of Port Washington Road and Silver Spring Drive to deploy a tire deflation device.
For Draghi, who used up so much of the ECB’s firepower to stave off the threat of deflation, that’s one more reason to be patient.
With deflation, a tariff that increased the cost of an import by 10 percent — a $100 tariff on one ton of steel originally priced at $1,000 — suddenly felt like a 20 percent tariff when steel prices fell to $500 per ton.
American shoppers are reaping the benefits of food deflation that has U.S. supermarkets at war.
If frustration ruled the first two games of the NBA Finals for Cleveland, deflation and resignation might be the sentiment for the Cavaliers in the two games in Cleveland.
But Japan has been close to or in deflation for most of the past two decades.
Second, there will be short-term deflation and then long-term inflation.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'deflation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of DEFLATION
What It Is
How It Works
Any way you slice it, deflation is caused by a significant drop in demand. Lots of things can cause this decrease in demand: recession, tighter monetary policy, civil unrest, terrorism, or changes in laws are common triggers. Many economists believe that these causes are often accompanied by a heavy psychological element. As consumers and companies grow more pessimistic about the economy or their standard of living, they tend to hoard cash instead of spending it. Likewise, banks tend to slow their lending and companies delay their expansion plans. These reductions in spending and lending lead to a decrease in the demand for goods and services. Less demand means producers, retailers, and other sellers of goods and services must lower their prices to entice buyers.
Although less expensive goods and services may seem like a good thing for consumers, it only marks the beginning of deflation's damaging downward spiral. The following sequence describes the dangers of deflation and the dangerous cycle it can create:
Why It Matters
Although many people laud lower across-the-board prices, prolonged periods of falling prices can wreak havoc on the economy by starting a downward economic spiral, resulting in fewer jobs, less income and a potential period of recession. Because the government can have such a tremendous impact on the economy in this vein, central banks like the Federal Reserve keep a close eye on economic measurements that will alert them of the threat of deflation.
DEFLATION Defined for English Language Learners
Definition of deflation for English Language Learners
: a decrease in the amount of available money or credit in an economy that causes prices to go down
: the act or process of letting air or gas out of (something)
Seen and Heard
What made you want to look up deflation? Please tell us where you read or heard it (including the quote, if possible).