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 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 When inflation goes to zero, or turns negative—or deflation—that is generally the sign of a very unhealthy economy. Kira Bindrim, Quartz, 31 May 2022 Inflation and deflation are money-to-goods-and-services phenomena. Robert Hockett, Forbes, 1 May 2022 An imbalance on either side of this equation can lead to rapid inflation or deflation for an in-game currency, which in turn can quickly ruin the value of the whole economy. Kyle Orland, Ars Technica, 12 Apr. 2022 That inflation plunged into negative numbers and then years of very benign inflation or even deflation followed. Richard Vague, Fortune, 24 Mar. 2022 Wood has for years made the case that deflation, not inflation, is the real economic boogeyman. Will Daniel, Fortune, 28 June 2022 The strength of the US dollar compared to other currencies could cause further deflation in US goods. Nate Dicamillo, Quartz, 13 July 2022 Inflation in Japan hasn’t historically been an issue, in fact, for years the country was more concerned with low growth and deflation. Will Daniel, Fortune, 9 July 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

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The first known use of deflation was in 1891

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Dictionary Entries Near deflation



deflationary gap

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Statistics for deflation

Last Updated

10 Aug 2022

Cite this Entry

“Deflation.” Dictionary, Merriam-Webster, Accessed 15 Aug. 2022.

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