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

With deflation now firmly in the rearview mirror, the path is clear for the Bank of Japan to raise interest rates sooner rather than later, said policy board member Hajime Takata.

From The Wall Street Journal

Seat deflation, a potential result of AI models performing tasks now handled by traditional software, refers to the idea that there could be fewer users of software as a service.

From Barron's

Second, while their orientation is focused almost exclusively on fighting inflation, central banks are not equipped to fight deflation.

From MarketWatch

Chinese indexes were mixed after inflation data rekindled deflation worries, though seasonal distortions were a major driver of the soft print.

From The Wall Street Journal

Asset purchases, commonly known as quantitative easing, work best when markets are under stress or facing deflation.

From MarketWatch

Related Words

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