deflation — meaning, examples & etymology [English]

deflation (/dɪˈfleɪ.ʃən/)

noun  ·  Advanced  ·  Work & Business

🔊 /dɪˈfleɪ.ʃən/

Meaning

Meaning: falling prices

A general fall in prices over time, the opposite of inflation, which can slow down an economy.

Examples

🗣 Prolonged deflation can hurt an economy because people delay buying, expecting even lower prices.

Etymology

Formed from the prefix ‘de-‘ (down, away) and ‘inflation’, by analogy.

How & Where It’s Used

Used in economics, often contrasted with inflation.

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Tags: economy, money

English Dictionary

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