Deflation is a reduction in economic activity that leads to lower levels of industrial output, employment, investment, trade, profits, and prices.
[business]
Deflation is beginning to take hold in the clothing industry.
deflation in British English
(dɪˈfleɪʃən)
noun
1.
the act of deflating or state of being deflated
2. 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
3. geology
the removal of loose rock material, sand, and dust by the wind
Derived forms
deflationary (deˈflationary)
adjective
deflationist (deˈflationist)
noun, adjective
deflation in American English
(diˈfleɪʃən; dɪˈfleɪʃən)
noun
1.
a deflating or being deflated
2.
a reduction in the general level of prices as a result of a severe decline in economic activity
3. Geology
erosion by the wind
inflation
Derived forms
deflationary (deˈflationˌary)
adjective
Examples of 'deflation' in a sentence
deflation
Yet Japan is still stuck with deflation and stagnant growth.
Times, Sunday Times (2016)
Food price deflation is not going away any time soon.
Times, Sunday Times (2016)
We are all familiar with inflation and deflation.
Times, Sunday Times (2015)
Europe is facing the twin perils of deflation and meagre growth.
Times, Sunday Times (2014)
Is deflation likely to take hold now?
Times, Sunday Times (2009)
Food deflation and a price war is a vicious mix.
Times, Sunday Times (2015)
The problem is that the margin between stable and low inflation and damaging deflation is quite slight.
Times, Sunday Times (2015)
Spain simultaneously needs both deflation and inflation.
Times, Sunday Times (2012)
Is a financial crisis more likely to occur when the economy is experiencing deflation or inflation?
Mishkin, Frederic S. Financial Markets, Institutions and Money (1995)
In most advanced economies there is a bigger worry about deflation than inflation.
Times, Sunday Times (2010)
We are also looking at an economy that is going to suffer from price deflation for some time.
Times, Sunday Times (2010)
Japan has adopted bold measures to get the country out of deflation but inflation is still well below target.
Times, Sunday Times (2016)
It is good to be a lender if deflation takes hold because the real value of debt increases over time.
Times, Sunday Times (2008)
There has been deflation and inflation.
Times, Sunday Times (2009)
Are we facing deflation or inflation?
Times, Sunday Times (2010)
We've been used over the last ten years to have food deflation.
Times, Sunday Times (2007)
This has been compounded by food deflation, he added.
Times, Sunday Times (2015)
Worse still, economists cannot decide whether to worry about deflation or inflation.
Times, Sunday Times (2010)
If deflation takes hold, then things will be a mess and people are likely to turn to gold as a safe haven.
Times, Sunday Times (2009)
Yet this is far from certain and policymakers need to do more to stave off the threat of deflation, stagnation and financial instability.
Times, Sunday Times (2014)
A 50 per cent increase since its low is seen as good for deflation without damaging growth prospects.
Times, Sunday Times (2015)
Smaller shops, too, are feeling the pinch from sharp deflation in food prices.
Times, Sunday Times (2014)
Add it up and there's a business resilient enough to handle 2.5 per cent food deflation.
Times, Sunday Times (2015)
While the risk that deflation will take hold of the Western economies is small, it is not trivial.
Times, Sunday Times (2009)
The biggest decline in wholesale prices in 60 years has heightened fears that the US could be mired in deflation for some time yet.
Times, Sunday Times (2009)
In other languages
deflation
British English: deflation NOUN
Deflation is a reduction in economic activity that leads to lower levels of industrial output, employment, investment, trade, profits, and prices.
Deflation is beginning to take hold in the clothing industry.