deflation

American  

[dih-fley-shuhn] / dɪˈfleɪ ʃən /

noun

1. the act of deflating or the state of being deflated.

2. Economics. a fall in the general price level or a contraction of credit and available money (inflation ).

3. the erosion of sand, soil, etc., by the action of the wind.

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deflation British  

/ dɪˈfleɪʃən /

noun

1. the act of deflating or state of being deflated

2. economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices Compare disinflation

3. geology the removal of loose rock material, sand, and dust by the wind

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deflation Scientific  

/ dĭ-flā′shən /

1. The lifting and removal of fine, dry particles of silt, soil, and sand by the wind. Deflation is common in deserts and in coastal areas that have sand dunes.

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deflation Cultural  

1. A decrease in prices, often stated as an increase in the value of money, related to a decline in spending by consumers. (Compare inflation.)

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Other Word Forms

• deflationary adjective
• deflationism noun
• deflationist noun
• nondeflation noun
• nondeflationary adjective
• self-deflation noun

Etymology

Origin of deflation

First recorded in 1890–95; deflate + -ion

Compare meaning

How does deflation compare to similar and commonly confused words? Explore the most common comparisons:

• disinflation vs. deflation

Example Sentences

A 0% target leaves little room for error since even a minor shock could result in deflation, or falling prices—which is arguably more problematic than inflation.

From Barron's • Mar. 31, 2026

If that was the Fed’s goal, it could create a higher risk of deflation, which typically precedes an economic downturn.

From Barron's • Mar. 31, 2026

“Everyone will have their own views on inflation and deflation, but I don’t think it will be a one-way street,” said Hu of WinShore Capital.

From MarketWatch • Mar. 26, 2026

It’s debatable whether AI efficiencies are as responsible for layoffs and salary deflation as some executives claim.

From The Wall Street Journal • Mar. 19, 2026

The deflation would get faster and faster, the universe would get hotter and hotter, and it would eventually end in a backward big bang: the big crunch.

From "Zero: The Biography of a Dangerous Idea" by Charles Seife

Related Words

• bankruptcy
• collapse
• decline
• downturn
• hard times
• inflation
• shakeout
• slide
• slump
• stagnation
• unemployment