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


  • Inflation vs. Deflation: Who’s Winning?
    When it comes to the inflation versus deflation debate there is basically one distinct caveat that first must be agreed upon before further discussion can commence. An agreement must be made whether the ... Read more on this news related to 'Deflation'
  • Factories Slashing Prices Toughens Draghi’s Deflation Battle
    The European Central Bank president is on a mission to avert deflation as the euro region’s economic landscape deteriorates. Purchasing Managers ’ Indexes from Markit Economics showed manufacturing activity also contracted in France, Austria and Greece , with a gauge for the 18-nation region pointing to almost stagnant output. Read more on this news related to 'Deflation'
  • Swiss National Bank not ruling out negative rates
    Geneva (AFP) - Swiss National Bank chief Thomas Jordan on Monday said he did not rule out using negative interest rates to ward off the spectre of deflation. Read more on this news related to 'Deflation'

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