WordValedeflation
a general fall in prices across an economy
In more detail
1. (noun) a decrease in the general level of prices for goods and services in an economy
2. (noun) the act of letting air or gas out of something, like a balloon or tire
Examples
- 1. During deflation, the value of money increases because you can buy more with the same amount.
- 2. The deflation of the tire made it impossible to drive the car.
How to use deflation
In economics, deflation refers to sustained decreases in the overall price level, typically caused by reduced demand or oversupply, and is generally considered harmful to economic growth. The physical sense describes the removal of air or gas from an inflated object. The economic meaning is more common in formal discussion and policy contexts.
Common phrases
- economic deflation
- deflation of prices
- deflationary period
- risk of deflation
- deflate a tire
- deflate a balloon
Synonyms
price decline · contraction · economic shrinkage · deflating · air release
Opposites
inflation · expansion
Word family
deflate (verb) · deflationary (adjective) · deflationist (noun)
A common mistake
Learners sometimes confuse deflation with disinflation; disinflation means a slowdown in inflation (prices still rise but more slowly), whereas deflation means prices actually fall.
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