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deflation JUST WRITTEN FOR YOU

/dɪˈfleɪʃən/ · def-la·tion
noun
  1. An act or instance of deflating. The loss caused utter deflation and disappointment among the fans.
  2. A decrease in the general price level, that is, in the nominal cost of goods and services as well as wages. The country experienced a period of deflation after the economic downturn.
  3. An economic contraction. The central bank's policies led to a period of deflation, affecting the entire economy.
Did you know? The term 'deflation' is often used in economics to describe a situation where the general price level of goods and services decreases, but it can also be used in everyday language to describe a situation where something is reduced or diminished, such as a deflated balloon.
Written by Lexi Wordsworth, Dictionary Editor 0 lookups Added Jul 19, 2026