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inflation

American  
[in-fley-shuhn] / ɪnˈfleɪ ʃən /

noun

inflations plural
  1. Economics. a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation).

  2. the act of inflating.

  3. the state of being inflated.


inflation British  
/ ɪnˈfleɪʃən /

noun

  1. the act of inflating or state of being inflated

  2. economics a progressive increase in the general level of prices brought about by an expansion in demand or the money supply ( demand-pull inflation ) or by autonomous increases in costs ( cost-push inflation ) Compare deflation

  3. informal the rate of increase of prices

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

inflation Cultural  
  1. A general increase in prices.


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Etymology

Origin of inflation

First recorded in 1300–50; Middle English inflacio(u)n, from Latin inflātiōn-, stem of inflātiō, equivalent to inflāt(us), past participle of inflāre “to blow on or into, puff out” + -iō -ion; see inflate

Explanation

Think of inflation as expansion, usually from being filled with air, like a balloon. This also refers to rising prices. Think of a balloon puffing up, getting fuller and fuller — that's inflation. The word has a bunch of related meanings. We can say people a little too full of themselves are suffering from inflation: they are full of hot air. When the cost of living is ballooning, that's economic inflation. When the universe was born in the big bang, there was a huge inflation, as matter spread out, creating galaxies, stars, and planets.

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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.

“If energy prices remain elevated, investors may need to reassess not only the outlook for inflation, but also expectations for interest rates and economic growth.”

From MarketWatch • Jul. 8, 2026

The decision to raise interest rates comes as the inflation outlook looks a lot less threatening, with oil prices below $100 a barrel.

From The Wall Street Journal • Jul. 8, 2026

The IMF predicts U.S. inflation won’t return to, nor approach, the Federal Reserve’s goal of 2% until the end of 2027 — assuming an end to the Iran war.

From MarketWatch • Jul. 8, 2026

Looking ahead, asset quality will be a key area to watch as supply chain-related inflation risks build, while the proposed expansion of the Malaysia’s benchmark Kuala Lumpur Composite Index could temporarily reduce the sector’s weighting.

From The Wall Street Journal • Jul. 8, 2026

The eventual result was the inflation theory, which holds that a fraction of a moment after the dawn of creation, the universe underwent a sudden dramatic expansion.

From "A Short History of Nearly Everything" by Bill Bryson

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