C1nounformalmoneybusiness
US/dɪˈfleɪ.ʃən/
UK/dɪˈfleɪ.ʃən/
a fall in the general level of prices in a country, so money buys more
In context
Years of deflation made shoppers wait, hoping prices would fall even further.
Japan struggled with deflation for decades after its property bubble burst.
Central banks fear deflation because it can slow growth and increase debt.
Words that go with deflation
noun + preposition
- risk of deflationThe risk of deflation worried the central bank.
- fear of deflationThere is a growing fear of deflation in the euro zone.
adjective + noun
- persistent deflationPersistent deflation can trap an economy in years of low growth.
verb + noun
- avoid deflationPolicymakers want to avoid deflation at all costs.
verb + preposition
- fall into deflationThe economy could fall into deflation if spending keeps dropping.
noun + noun
- deflation spiralExperts warned of a dangerous deflation spiral.
Common mistakes
Incorrect:
The deflation of the dong made imports expensive.Correct: The devaluation of the dong made imports expensive.