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
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
The rally has delivered challenges to the economy, which in May marked a return to deflation for the first time since the Covid-19 pandemic — spurring the Swiss National Bank to cut interest rates to zero in June.
—Jenni Reid, CNBC, 1 Aug. 2025
And the ways in which economists schooled in Japan’s 1990s nightmare can follow the dots as Beijing battles deflation the way Tokyo did for decades.
—William Pesek, Forbes.com, 30 July 2025
Video equipment: Prices surged a record 4.5% in June after rising 1% in May in this category that typically has seen more deflation than inflation since 1998, when the BLS started tracking it.
—Alicia Wallace, CNN Money, 15 July 2025
See All Example Sentences for deflation
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Emma Burleigh, Fortune, 1 Aug. 2025
The rally has delivered challenges to the economy, which in May marked a return to deflation for the first time since the Covid-19 pandemic — spurring the Swiss National Bank to cut interest rates to zero in June.
—Jenni Reid, CNBC, 1 Aug. 2025
And the ways in which economists schooled in Japan’s 1990s nightmare can follow the dots as Beijing battles deflation the way Tokyo did for decades.
—William Pesek, Forbes.com, 30 July 2025
Video equipment: Prices surged a record 4.5% in June after rising 1% in May in this category that typically has seen more deflation than inflation since 1998, when the BLS started tracking it.
—Alicia Wallace, CNN Money, 15 July 2025
See All Example Sentences for deflation
Cite this Entry
“Deflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/deflation. Accessed 12 Aug. 2025.
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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