deflation

noun
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

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 Recall that during the financial crisis of 2008 TIPS were sold aggressively as both illiquidity and fears of deflation surfaced and drove the forward breakeven down to about 1.5%. Vineer Bhansali, Forbes, 18 July 2022 Defiance in the face of deflation can fuel such things. San Diego Union-Tribune, 13 Aug. 2022 Following an economic boom after World War II, Japan has been stuck in stagnation and deflation since the 1990s. CNN, 18 Aug. 2022 But last month, Wingstop president and CEO Michael Skipworth said the company would start to see deflation in prices for bone-in chicken wings. Rob Wile, NBC News, 17 Aug. 2022 The lack of circulation is self-reinforcing: reducing the circulating supply accelerates deflation. Steve H. Hanke, National Review, 2 Aug. 2022 Despite gasoline prices falling by 7.7%, this deflation was offset by inflation in food and shelter, resulting in no change in the overall CPI of urban consumers through July. Hank Sanders, ABC News, 10 Aug. 2022 But before that, some only saw the delusion, not the deflation. Daniel D'addario, Variety, 4 Aug. 2022 Dollars are more susceptible to damage from inflation and deflation, and this damage can also be very severe. The Salt Lake Tribune, 27 June 2022 See More

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.

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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Dictionary Entries Near deflation

deflate

deflation

deflationary gap

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Statistics for deflation

Last Updated

27 Sep 2022

Cite this Entry

“Deflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/deflation. Accessed 7 Oct. 2022.

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