inflation

American  

[in-fley-shuhn] / ɪnˈfleɪ ʃən /

noun

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 (deflation ).

2. the act of inflating.

3. the state of being inflated. inflated.

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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

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inflation Cultural  

1. A general increase in prices.

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Other Word Forms

• anti-inflation noun
• noninflation noun
• overinflation noun
• reinflation noun
• self-inflation noun

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; 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.

Example Sentences

The Fed won’t have much leeway — if any — to cut interest rates and reduce borrowing costs on mortgages and other loans if inflation is heading higher.

From MarketWatch • Apr. 14, 2026

"Reacting strongly to flexible commodity prices, when supply constraints are present only in the related sectors, brings down inflation fast but risks a recession later," it said.

From BBC • Apr. 14, 2026

Wholesale inflation tends to be more volatile than the consumer-price index, which also accelerated in March as Americans paid more for gasoline and diesel.

From The Wall Street Journal • Apr. 14, 2026

If "the price of oil is going up, inflation is going up and the stock market's going down, he's going to start to panic," he said.

From Barron's • Apr. 14, 2026

College graduates have received steady pay increases over the past two decades, while the pay of everyone else has risen little more than the rate of inflation.

From "Class Matters" by The New York Times

Related Words

• boom
• expansion
• hike
• rise