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

Should prices fall for a sustained period, deflation could occur that hurts economic growth.

From The Wall Street Journal

As long as China is at the brink of deflation, this scenario may not be seen as desirable, he added.

From The Wall Street Journal

China’s advances in artificial intelligence, its continued push for technological self-reliance and resilience in global trade have helped boost investor confidence, easing concerns over weak domestic demand and persistent deflation.

From The Wall Street Journal

More broadly, what investors must keep in mind is that Japan’s high debt-to-GDP ratio is largely the result of decades of stagnant growth and deflation, not profligate spending.

From The Wall Street Journal

First, he notes that China’s exporting of deflation has faded.

From MarketWatch

Related Words

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