Definition of “deflation” - English Dictionary

“deflation” in British English

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deflationnoun [ U ]

uk /dɪˈfleɪ.ʃən/ us /dɪˈfleɪ.ʃən/

deflation noun [ U ] (MAKING SMALLER/WEAKER)

the action of making something smaller by removing the air from inside it; the fact of becoming smaller in this way :

The rate of deflation of the balloon depends on the kind of material from which it is made.

the situation in which something becomes weaker, or something or someone becomes less confident than before:

a feeling of deflation after the party
deflationary
adjective uk /dɪˈfleɪ.ʃən.ər.i/ us /dɪˈfleɪ.ʃən.er.i/

a deflationary budget/policy

(Definition of “deflation” from the Cambridge Advanced Learner's Dictionary & Thesaurus © Cambridge University Press)

“deflation” in Business English

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deflationnoun [ U ]

uk /dɪˈfleɪʃən/ us

ECONOMICS an economic situation in which prices fall and there is a reduction in wages and government spending, and low levels of growth:

Global deflation is squeezing profits and extinguishing jobs.
He warned that Euroland could sink into deflation unless the central bankers tailored their policies to promote economic growth.
In monetary deflation, a contracting money supply causes prices and demand to decline.

a situation in which the value or price of something is reduced:

The current deflation of home prices is having a profound effect on American society.
The price of cars, computers, and dishwashers have all been falling as global deflation in traded goods gathers pace.
asset deflation.

(Definition of “deflation” from the Cambridge Business English Dictionary © Cambridge University Press)