- deflation
- Decline in the prices of goods and services. Antithesis of inflation. Bloomberg Financial Dictionary————The rate at which the general level of prices for goods and services is decreasing - the opposite of inflation.
* * *
deflation de‧fla‧tion [ˌdiːˈfleɪʆən, dɪ-] noun [uncountable]ECONOMICS when a government reduces demand for goods and services by raising interest rates and taxes, limiting wage increases, or reducing government spending, or a combination of these:• Governments responded to the loss of competitiveness by deflation and incomes policies.
— deflationary adjective :• The government was unwilling to introduce adequate deflationary policies.
when the value of assets such as property is falling:• All around the world you have asset deflation going on. The whole world is slowing into a recession.
ˈcurrency deˌflation also ˈmonetary deˌflation ECONOMICSa situation in which prices are falling:• Governments can't employ monetary deflation because it destroys private debtors.
— compare disinflation, inflation* * *
A fall in prices. Not to be confused with depreciation, which is a fall in value of a currency.* * *
deflation UK US /dɪˈfleɪʃən/ noun [U]► 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.
Financial and business terms. 2012.
