Deflation

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Deflation Meaning and Definition in Dictionary

Definitions from Wordnet 2.0


  • the act of letting the air out of something
  • a contraction of economic activity resulting in a decline of prices
  • (geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind; "a constant deflation of the desert landscape"

Definitions from Wiktionary


  • (geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind; "a constant deflation of the desert landscape" ,
  • a contraction of economic activity resulting in a decline of prices ,
  • the act of letting the air out of something

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Deflation Meaning and Definition in Wikipedia


Deflation means that generally the prices of products are going down. It is the opposite of inflation. It is said, that deflation happens when there is less money than there are goods (goods are almost any kind of product). It is also said that deflation is a sign of a weak state of that country's economy, because deflation usually happens during an economic collapse. Deflation is thought to be even worse than inflation.

Deflation starts when people are waiting for prices to go down even more. They will then spend less money. Because of that, companies can not afford to keep up the amount of goods that are made, and have to lower that amount, as well as fire workers to make even a small profit.

Even if an economy is growing, there can be some amount of deflation - if the amount of money going around grows slower than the making of goods. There has not been much deflation in the world since the 1930s, except in Japan.



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Deflation Sample Sentences in News


  • Deflation Curve Shows Price Risk as ECB Boosts QE: Poland Credit
    Polish bonds are showing investors see little likelihood of rising consumer prices at home as concern builds the euro region is exporting deflationary pressures. Read more on this news related to 'Deflation'
  • Deflation Ogre Proves More Fairy Tale Than Fact in World Economy
    Even in Japan, the home of deflationary fears for almost 20 years, the deflation risk is the lowest in a decade at 18 percent, suggesting to Pavilion that Prime Minister Shinzo Abe, seen here, is “winning the war.” Read more on this news related to 'Deflation'
  • Polish Deflation Deepens, Boosting Case for Rate Cuts
    Poland’s deflation extended to a fourth month, deepening more than economists estimated as pressure builds on the central bank to resume monetary easing. Read more on this news related to 'Deflation'

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