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

The market’s recent poor performance, moreover, may have something to do with a deflation of the artificial intelligence investment bubble of recent years, which may have further to unfold. —Michael Hiltzik, Los Angeles Times, 13 Mar. 2025

This drop in demand can incentivize businesses to cut prices, leading to deflation or at least disinflation. —Jason Schenker, Forbes, 11 Mar. 2025

Rent inflation turned into a very slight deflation. —Bill Conerly, Forbes, 6 Mar. 2025

Widespread falling prices, known as deflation, can be a dangerous sign for the economy. —Danny Freeman, CNN, 5 Mar. 2025

Word History

First Known Use

1891, in the meaning defined at sense 1

Rhymes for deflation

• ablation
• bination
• carnation
• cassation
• castration
• causation
• centration
• cessation
• cetacean
• chelation
• citation
• collation

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