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Definition of "deflation" []

  • The act of deflating or the condition of being deflated. (noun)
  • A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available currency and credit. (noun)
  • The erosion of soil by the wind. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Use "deflation" in a sentence
  • ""The term deflation, which is more appropriately used to describe a period of sustained price decline, may be too strong a word" for China, said Moody's Economy. com analyst Sherman Chan, because the "contraction in prices is expected to be short-lived.""
  • "Some economists urged caution about using the term deflation, often defined as a period of sustained price declines."
  • "For most economists and commentators, a general fall in prices, which they label deflation, is a terrible thing."