deflation
noun
de·fla·tion
di-ˈflā-shən 
ˌdē-
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
Examples of deflation in a Sentence
Economists worry that deflation will bring the country into recession.
Recent Examples on the Web
Chinese authorities have struggled to lift the economy out of an entrenched deflation as consumers cut back spending amid a prolonged real estate downturn, a bleak job market and uncertain income prospects.
—
Anniek Bao, CNBC, 24 Feb. 2026
To be sure, while AI-induced deflation and labor shifts may cause turbulence, this scenario may be overlooking human adaptability and institutional response.
—Nick Lichtenberg, Fortune, 23 Feb. 2026
Japan has been struggling with a pervasive sense of stagnation and disillusionment born of decades of deflation, wage stagnation, demographic decline and a creeping loss of confidence in the country’s place in the world.
—Jeff Kingston, Time, 15 Feb. 2026
Japan struggled for a long time with deflation and, in fact, welcomed the surge in global inflation in the earlier part of this decade.
—Isaac Chotiner, New Yorker, 10 Feb. 2026
See All Example Sentences for deflation
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Anniek Bao, CNBC, 24 Feb. 2026
To be sure, while AI-induced deflation and labor shifts may cause turbulence, this scenario may be overlooking human adaptability and institutional response.
—Nick Lichtenberg, Fortune, 23 Feb. 2026
Japan has been struggling with a pervasive sense of stagnation and disillusionment born of decades of deflation, wage stagnation, demographic decline and a creeping loss of confidence in the country’s place in the world.
—Jeff Kingston, Time, 15 Feb. 2026
Japan struggled for a long time with deflation and, in fact, welcomed the surge in global inflation in the earlier part of this decade.
—Isaac Chotiner, New Yorker, 10 Feb. 2026
See All Example Sentences for deflation
Cite this Entry
“Deflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/deflation. Accessed 2 Mar. 2026.
Copy CitationKids 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
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