English Reference

Word

deflation

Phoneticsde·fla·tion

US/dɪˈfɫeɪʃən/

UK/diːflˈeɪʃən/

Definition

n. a decrease in the general price level of goods and services in an economy. It can also mean the process of air or gas escaping from something, like a tire or a balloon.

n. a sustained decrease in the general price level of goods and services in an economy; also refers to the process of air or gas escaping from a container or cavity.

Examples

“The central bank is worried about deflation because prices are falling.”

“After the tire was punctured, the driver noticed the deflation of the air inside the rubber as it lost pressure.”

“While moderate deflation can increase the purchasing power of consumers, it often signals a lack of demand that can lead to a prolonged economic downturn if not addressed by monetary policy.”

Examples

simple

“The central bank is worried about deflation because prices are falling.”

contextual

“After the tire was punctured, the driver noticed the deflation of the air inside the rubber as it lost pressure.”

complex

“While moderate deflation can increase the purchasing power of consumers, it often signals a lack of demand that can lead to a prolonged economic downturn if not addressed by monetary policy.”

Real-World Examples

“Until recently the country had experienced very low inflation or deflation - falling prices - for around three decades.”
BBC News · 18 Sept 2026
“I don’t take any negatives or offence to it.” Carrick was asked whether he felt a certain deflation among the fans, who have been expecting a big season from United.”
The Guardian · 20 Sept 2026

Etymology

From deflate + -ion.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Domains

EconomicsGeology

This entry

Level
C1 · Advanced
Frequency
Occasional
Updated

Scan code

englishreference.com/q/deflation

English Reference