de·​fla·​tion | \ di-ˈflā-shən How to pronounce deflation (audio) , ˌdē- \

Definition of deflation

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

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Other Words from deflation

deflationary \ di-​ˈflā-​shə-​ˌner-​ē How to pronounce deflation (audio) , ˌdē-​ \ adjective

Examples of deflation in a Sentence

Economists worry that deflation will bring the country into recession.
Recent Examples on the Web Journalists covered in real time the company’s meteoric rise and, more recently, its deflation. Arielle Pardes, Wired, "A New WeWork Documentary Relives Its Roller Coaster Story," 17 Mar. 2021 The stock did come down as low as $38, but the deflation didn’t stick. George Calhoun, Forbes, "GameStop – The Second Surge: Anatomy Of A “Gamma Swarm”," 11 Mar. 2021 Against that last point, Bloomberg’s John Authers notes that: Many forces for deflation or disinflation also remain in place. Andrew Stuttaford, National Review, "Inflation, Inflation, Inflation (or Not)," 5 Mar. 2021 And with key consumer prices falling again, the prospect of a return to the deflation that ingrained that attitude can’t be ruled out. Toru Fujioka,, "Tokyo’s Tiny Noodle Bars Shut Down Rather Than Put Up Prices," 11 Nov. 2020 The authors concede that a serious bout of deflation could drive up bond returns. The Economist, "Daily chart Young people stand to make dismal returns on their investments," 15 Mar. 2021 Officers then deployed a tire deflation device, which brought the vehicle to a halt. Jamie Landers, The Arizona Republic, "3 people arrested after leading Navajo police on car chase, shooting at officers," 10 Mar. 2021 The decision to allow inflation to run hot is aimed at boosting employment, easing inequality and avoiding the specter of deflation. Matt Egan, CNN, "Exclusive: Wall Street is in for a rude awakening, former NY Fed president says," 3 Mar. 2021 Then, in 1998, the Asian crisis caused Greenspan and others to ease rates on fears of deflation, further inflating asset prices. Nancy Tengler, USA TODAY, "Volatility is not a bubble: Here's why the stock market will likely continue to be bullish," 24 Feb. 2021

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.

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First Known Use of deflation

1891, in the meaning defined at sense 1

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Time Traveler for deflation

Time Traveler

The first known use of deflation was in 1891

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Statistics for deflation

Last Updated

31 Mar 2021

Cite this Entry

“Deflation.” Dictionary, Merriam-Webster, Accessed 23 Apr. 2021.

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More Definitions for deflation



English Language Learners Definition of deflation

: 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)

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