English · Work & Business
deflation
/dɪˈfleɪ.ʃən/
[/dɪˈfleɪ.ʃən/]
falling prices
Advancednoun
Definition
A general fall in prices over time, the opposite of inflation, which can slow down an economy.
Example
Prolonged deflation can hurt an economy because people delay buying, expecting even lower prices.
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.