# deflation

/dɪˈfɫeɪʃən/ (US) · /diːflˈeɪʃən/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/deflation
Updated: 2026-05-18

## Definition

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.

For teachers: 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.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.