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

China’s economy is already flirting with deflation, as consumer prices have been anemic while producer prices have been falling. —Jason Ma, Fortune, 15 Aug. 2025

This year, Chinese authorities intensified scrutiny over excessive production in sectors like steel and coal in a bid to curb cutthroat competition that has weighed on businesses’ profitability and worsened deflation. —Anniek Bao, CNBC, 15 Aug. 2025

China vows to tackle deflation caused by ‘disorderly competition’ China is pivoting away from consumer subsidy efforts and toward combating deflation and price wars. —Matthew Martin, semafor.com, 30 July 2025

Some employees have been hit with wage deflation, and the prospect of switching jobs for better pay has been upended. —Emma Burleigh, Fortune, 1 Aug. 2025

Word History

First Known Use

1891, in the meaning defined at sense 1

Rhymes for deflation

• ablation
• bination
• carnation
• cassation
• castration
• causation
• centration
• cessation
• cetacean
• chelation
• citation
• collation

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