deflation

noun

de·​fla·​tion di-ˈflā-shən 

ˌdē-

1

: an act or instance of deflating : the state of being deflated

2

: a contraction in the volume of available money or credit that results in a general decline in prices

3

: the erosion of soil by the wind

deflationary

di-ˈflā-shə-ˌner-ē 

ˌdē-

adjective

Examples of deflation in a Sentence

Economists worry that deflation will bring the country into recession.

Recent Examples on the Web

China’s deflation worries deepened in September with consumer prices rising at their slowest pace in three months at 0.4% from a year earlier, while the producer price index fell at the fastest pace in six months, down 2.8%. —Anniek Bao, CNBC, 14 Oct. 2024

Officials spoke little about deflation at the hourlong briefing on Saturday. —L'oreal Thompson Payton, Fortune, 12 Oct. 2024

Since the late 1990s, a succession of governments have tried to turn deflation into inflation. —William Pesek, Forbes, 10 Oct. 2024

For the month, prices held flat, as falling energy prices countered a 1% leap in foods — their highest jump since February — and resulted in overall goods deflation. —Alicia Wallace, CNN, 11 Oct. 2024

Word History

First Known Use

1891, in the meaning defined at sense 1

Kids Definition

deflation

noun

de·​fla·​tion di-ˈflā-shən 

ˈdē-

1

: an act or instance of deflating : the state of being deflated

2

: a reduction in the volume of available money or credit resulting in a decline of the general price level

deflationary

-shə-ˌner-ē 

adjective