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

But the fight against deflation is nowhere near over − data on Monday are expected to show that factory gate prices fell 1.4% year-on-year in August, nearly twice the pace of July's 0.8% fall. —Jamie McGeever, USA TODAY, 8 Sep. 2024

The chart shows that durable goods are already in deflation. —Robert Barone, Forbes, 7 Sep. 2024

To argue that these changes will lead to spiraling debt deflation in today's world strains credulity. —Menzie D. Chinn, Foreign Affairs, 16 Aug. 2012

Although consumers want lower prices, deflation can be dangerous for the economy. —Nathaniel Meyersohn, CNN, 15 Aug. 2024

Word History

First Known Use

1891, in the meaning defined at sense 1

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