Examples of deflation in a Sentence
Economists worry that deflation will bring the country into recession.
Recent Examples of deflation from the Web
The driver led police northbound on Route 71, but he was intercepted when Oswego police officers deployed Stop Sticks tire deflation devices on the pavement at Routes 71 and 34.
From its creation in 1913 until the 1987 crash, the economic effects of asset inflation and deflation were not a formal component of Fed policy deliberations.
Canadian grocers, which were locked in a price war and are just coming out of a prolonged bout of food deflation, now have to get ready for Amazon, which in June agreed to buy Whole Foods Market Inc.
Food deflation has been a concern for Royal Ahold Delhaize NV, tumbling oil prices for Royal Dutch Shell Plc, while Philips is keeping an anxious eye on Trump’s healthcare plan and Akzo Nobel is struggling with China’s crackdown on polluters.
Convinced that Xi Jinping, China’s president, has the will and ability to impose capacity cuts, investors have shed their fears that damaging deflation might be China’s next export.
Food deflation, while a boon to consumers, has also eaten into grocers’ profits.
During the first half of 2017, deflation was banished, debt defaults slowed, and growth rebounded.
But boosting wages also is vital after 15 years of deflation in Japan that has damped economic activity.
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.
First Known Use of deflation
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
Seen and Heard
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