reflation

American  

[ri-fley-shuhn] / rɪˈfleɪ ʃən /

noun

1. restoration of economic activity, consumer prices, etc., to higher levels by manipulating monetary policy.

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reflation British  

/ riːˈfleɪʃən /

noun

1. an increase in economic activity

2. an increase in the supply of money and credit designed to cause such an increase

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Other Word Forms

• reflationary adjective

Etymology

Origin of reflation

First recorded in 1930–35; re- + (in)flation

Example Sentences

A flood of economic data is in store for China watchers, coming on the heels of data that sent encouraging signals on reflation.

From The Wall Street Journal • Apr. 10, 2026

“We expect a flat initial fiscal envelope, a continued focus on tech and public capex, and reactive guardrails for consumption and property—keeping reflation a slow burn,” MS said.

From The Wall Street Journal • Mar. 2, 2026

“That all looks to me much more like a reflation trade than a debasement trade,” Pasquariello said, referring to the prospect for a fiscal boost in Japan and the recent talk of waning dollar attractiveness.

From MarketWatch • Feb. 16, 2026

Strategists like Dario Perkins of TS Lombard argue that markets remain positioned for a benign “soft landing,” even as the conditions for a more forceful reflation are quietly falling into place.

From Barron's • Jan. 2, 2026

But at this morning’s 1.24%, the reflation trade seems pretty much on hold and the U.S. 10-year yield isn’t much of a threat to the appeal of the stock market.

From Reuters • Jul. 28, 2021