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.

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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.

ˈasset deˌflation ECONOMICS FINANCE
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 ECONOMICS
a situation in which prices are falling:

• Governments can't employ monetary deflation because it destroys private debtors.

— compare disinflation, inflation

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   A fall in prices. Not to be confused with depreciation, which is a fall in value of a currency.
   ► See also Depreciation, Disinflation, Inflation.

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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.

Compare DISINFLATION(Cf. ↑disinflation), INFLATION(Cf. ↑inflation), REFLATION(Cf. ↑reflation)

Financial and business terms. 2012.

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Look at other dictionaries:

  • Deflation — Déflation Pour les articles homonymes, voir déflation (homonymie).  Ne doit pas être confondu avec désinflation. En économie, une déflation est une baisse de l indice des prix observée sur une période suffisamment longue …   Wikipédia en Français

  • deflation — n. 1. the act or process of deflating. [PJC] 2. a fall in the average prices of goods and services; usually associated with contraction of economic activity. Opposite of {inflation}. Compare {disinflation}. [PJC] 3. the reduction of available… …   The Collaborative International Dictionary of English

  • Deflation — Дефляция  – термин  используемый для описания ситуации падения общего уровня цен или увеличение покупательной способности денег вследствие уменьшения совокупного спроса, снижения стоимости товаров, ограничения количества денег в обращении. … …   Финансовый словарь

  • Deflation — Deflation, s. Abrasion, Denudation und Wüste …   Meyers Großes Konversations-Lexikon

  • Deflation — (lat.), die Fortführung der lockern Teile der Erdoberfläche durch den Wind, bes. in Wüsten …   Kleines Konversations-Lexikon

  • deflation — index decline, decrease, depression, diminution, disgrace Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • deflation — 1891, release of air, from DEFLATE (Cf. deflate) + ION (Cf. ion). In reference to currency or economic situations, from 1920 …   Etymology dictionary

  • deflation — ► NOUN 1) the action or process of deflating or being deflated. 2) reduction of the general level of prices in an economy. DERIVATIVES deflationary adjective …   English terms dictionary

  • deflation — [dē flā′shən, diflā′shən] n. 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. Geol. erosion by the wind: See INFLATION deflationary adj …   English World dictionary

  • Deflation — For other uses, see Deflation (disambiguation). Not to be confused with Disinflation. Economics …   Wikipedia

  • Deflation — Unter Deflation versteht man in der Volkswirtschaftslehre einen allgemeinen, signifikanten und anhaltenden Rückgang des Preisniveaus für Waren und Dienstleistungen. Inhaltsverzeichnis 1 Auswirkungen 1.1 Direkte Auswirkungen 1.2 Indirekte… …   Deutsch Wikipedia

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