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 narrowly avoided a slip into deflation in December, statistics authorities said last week, with prices rising at their slowest pace in nine months. —Beatrice Nolan, Fortune Asia, 17 Jan. 2025

Energetic purchases of bonds by the central bank are a standard policy prescription for economies facing deflation: a broad decline in prices. —Keith Bradsher, New York Times, 10 Jan. 2025

Police put stop sticks, or tire deflation devices, near the vehicle and called for backup from the Olive Branch Police Department and DeSoto County Sheriff’s Department. —Saleen Martin, USA TODAY, 16 Dec. 2024

Falling prices constitute deflation, inflation’s ugly cousin. —Nick Rockel, Fortune, 25 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