deflationary
Americanadjective
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Economics. characterized by or causing a reduction in the supply of available money or credit, typically leading to a decline in prices.
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characterized by or having the effect of deflating something.
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
The later drawdowns all coincided with a deflationary environment, allowing monetary authorities to pivot quickly and reflate markets and asset prices.
From MarketWatch ● Nov. 3, 2026
The full consequences of state-driven manufacturing overcapacity have yet to be felt, but the early signs of another deflationary shock, perhaps as serious as the deflation of the real-estate bubble, are rippling through the economy.
From The Wall Street Journal ● Aug. 17, 2026
Qualitative improvements in any product or service are deflationary — that is, they reduce inflation over time.
From MarketWatch ● Jul. 22, 2026
“The sharp decline in the oil price last week restored confidence in the deflationary narrative and revived the prospect of Federal Reserve rate cuts later this year,” said Kathleen Brooks, research director at XTB.
From The Wall Street Journal ● Apr. 13, 2026
This possibility of a deflationary spiral in the future will exist unless we now plan and adopt an effective full employment program.
From State of the Union Address by Harry S. Truman
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