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.

1890–95; deflate + -ion

deflationary, adjective
deflationism, noun
deflationist, noun, adjective
nondeflation, noun
nondeflationary, adjective
self-deflation, noun Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
deflation (dɪˈfleɪʃən)
1.  the act of deflating or state of being deflated
2.  economics Compare disinflation a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices
3.  geology the removal of loose rock material, sand, and dust by the wind
n, —adj

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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Word Origin & History

1891, "release of air," from deflate + -ion. In reference to currency, from 1920.
Online Etymology Dictionary, © 2010 Douglas Harper
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American Heritage
Science Dictionary
deflation   (dĭ-flā'shən)  Pronunciation Key 
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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American Heritage
Cultural Dictionary

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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Example sentences
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.
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