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deflation

/dɪˈfleɪʃən/ noun · British & US
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What does deflation mean?

noun

A decrease in the general price level of goods and services in an economy over time, resulting in an increase in the purchasing power of money. A decrease in the value of something, such as a currency or a stock.

Example

"The economy experienced a period of deflation after the financial crisis, leading to increased savings and reduced spending."

Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.

Etymologically related

Synonyms for deflation

Antonyms of deflation

Rhymes with deflation