deflation

noun

de·​fla·​tion di-ˈflā-shən How to pronounce deflation (audio)
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 adjective

Examples of deflation in a Sentence

Economists worry that deflation will bring the country into recession.
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
In September, the decline in China’s factory-gate prices, a gauge of deflation, extended into the 36th straight month, though the drop has narrowed following Beijing’s attempt in recent months to rein in price competition in certain sectors. Elisabeth Buchwald, CNN Money, 30 Oct. 2025 Rather than forcing lopsided trade deals on allies and friends, Washington would do better to organize a common message to Chinese leaders that a business model that fuels deflation at home and anger abroad is untenable. Christopher Smart, Time, 29 Oct. 2025 Separate inflation and deflation valves. Bestreviews, Mercury News, 28 Oct. 2025 The rebound in corporate profitability was largely helped by Beijing’s policies aimed at curtailing fierce price competition across industrial sectors, at a time when deflation in producer prices stretched into its third year. Anniek Bao, CNBC, 27 Oct. 2025 See All Example Sentences for deflation

Word History

First Known Use

1891, in the meaning defined at sense 1

Time Traveler
The first known use of deflation was in 1891

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Cite this Entry

“Deflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/deflation. Accessed 6 Nov. 2025.

Kids Definition

deflation

noun
de·​fla·​tion di-ˈflā-shən How to pronounce deflation (audio)
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 adjective
Last Updated: - Updated example sentences
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