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


  • Japan not out of deflation yet: economy minister
    Japan hasn't emerged from years of deflation quite yet, the country's economy minister said Friday, after a sales tax hike sparked a sharp decline in second-quarter growth. The comments from Akira Amari came two days after fresh data showed the economy suffered its biggest quarterly contraction since the 2011 quake and tsunami disasters as the levy rise sl Read more on this news related to 'Deflation'
  • US Bank's Haworth: Not Expecting Deflation At This Point; Negative On Gold
    (Kitco News) - Subdued consumer inflation data, sluggish wage growth and falling commodity prices have some market watchers concerned about potential deflation, but an investment strategist at a top U.S. bank says he’s not worried. Read more on this news related to 'Deflation'
  • French prices plunge in July, sparking deflation fears
    French prices dropped sharply in July compared to the previous month, official data published on Wednesday showed, adding to fears of deflation in France and the wider eurozone. On a year-on-year basis, prices rose by 0.5 percent, the same as the previous month. Earlier this month, French Prime Minister Manuel Valls said there was a real risk of deflation in the e Read more on this news related to 'Deflation'

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