Deflation

Pronunciation: /dɪˈfleɪʃən/

Definitions of deflation

noun a reduction in the general level of prices in an economy

Example Sentences

A1 Deflation means a decrease in the general price level of goods and services.

A2 The country is experiencing deflation, causing prices to fall.

B1 Deflation can lead to lower consumer spending and economic stagnation.

B2 Central banks may implement policies to combat deflation and stimulate economic growth.

C1 Persistent deflation can have long-term negative effects on an economy.

C2 The government is working to prevent deflation through various fiscal and monetary measures.

Examples of deflation in a Sentence

formal The deflation in the housing market is causing concern among economists.

informal I heard there's deflation in the prices of electronics.

slang I'm trying to score some deals during this deflation period.

figurative Her deflation after losing the competition was evident in her body language.

Grammatical Forms of deflation

• plural: deflations
• comparative: more deflation
• superlative: most deflation
• present tense: deflates
• future tense: will deflate
• perfect tense: has deflated
• continuous tense: is deflating
• singular: deflation
• positive degree: deflation
• infinitive: to deflate
• gerund: deflating
• participle: deflated

Origin and Evolution of deflation

First Known Use: 1920 year

Language of Origin: Latin

Story behind the word: The word 'deflation' originated from the Latin word 'deflatio' which means 'a blowing off'

Evolution of the word: Originally used in the context of economics to describe a decrease in the general price level of goods and services, the term 'deflation' has evolved to also refer to a reduction in the supply of money in an economy leading to a decrease in spending and economic activity.