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.

---

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

---

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.

---

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.)

---

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

Persistent deflation in rice prices likely helped to contain food costs, while utilities inflation is expected to ease due to lower electricity tariffs.

From The Wall Street Journal

While AI is a significant innovation, Grantham warns that an eventual AI bubble deflation could lead to economic stumble and severe decline in valuations.

From Barron's

While AI is a significant innovation, Grantham warns that an eventual AI bubble deflation could lead to economic stumble and severe decline in valuations.

From Barron's

Plenty of evidence suggests that exchange-rate swings produce at best very short-term shifts in economic activity—before domestic inflation and deflation offset the effects.

From The Wall Street Journal

“Old habits die hard,” said Robin Xing, Morgan Stanley’s chief China economist, who expects deflation in the country to continue at least through this year.

From The Wall Street Journal

Related Words

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