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[dih-fley-shuh n] /dɪˈfleɪ ʃən/
the act of deflating or the state of being deflated.
Economics. a fall in the general price level or a contraction of credit and available money (opposed to inflation).
Compare disinflation.
the erosion of sand, soil, etc., by the action of the wind.
Origin of deflation
1890-95; deflate + -ion
Related forms
deflationary, adjective
deflationism, noun
deflationist, noun, adjective
nondeflation, noun
nondeflationary, adjective
self-deflation, noun Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2015.
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Examples from the web for deflation
  • No one has a crystal ball for inflation or deflation.
  • The deflation risk is closely linked to global imbalances.
  • Two wide mouth valves ensure fast inflation and simple deflation.
  • Some economists argue that worldwide overcapacity threatens to unleash deflation in the world economy.
  • However, with inflation falling rapidly in so many countries, deflation is emerging as a threat.
  • Gesell argued that a higher velocity of money helps combat deflation.
  • deflation alarms economists because it can quickly send the economy into a downward spin.
  • Of course, concerns about deflation and slow growth are closely interlinked.
  • deflation naturally happens as production growth outpaces monetary growth.
  • He thinks the rise in bond yields to date is due more to optimism about the economy than fear of deflation.
British Dictionary definitions for deflation


the act of deflating or state of being deflated
(economics) a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices Compare disinflation
(geology) the removal of loose rock material, sand, and dust by the wind
Derived Forms
deflationary, adjective
deflationist, noun, adjective
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
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Word Origin and History for deflation

1891, "release of air," from deflate + -ion. In reference to currency or economic situations, from 1920.

Online Etymology Dictionary, © 2010 Douglas Harper
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deflation in Science
The lifting and removal of fine, dry particles of silt, soil, and sand by the wind. Deflation is common in deserts and in coastal areas that have sand dunes.
The American Heritage® Science Dictionary
Copyright © 2002. Published by Houghton Mifflin. All rights reserved.
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deflation in Culture

deflation definition

A decrease in prices, often stated as an increase in the value of money, related to a decline in spending by consumers. (Compare inflation.)

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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