deflation
Deflation happens when prices across the economy go down, not just one or two items.
a sustained fall in the general level of prices in an economy, so that money buys more than before.
Deflation is when air comes out of something and it becomes smaller, flatter, or softer.
the act or process of releasing or losing air or another gas from something, causing it to shrink, collapse, or lose pressure.
A deflation of feelings is a drop from excitement or confidence to disappointment.
a reduction in someone's confidence, hopes, pride, or excitement, especially after disappointing news or an unexpected setback.
In geology, deflation is wind blowing away loose soil or sand.
in geology, the removal of loose sand, soil, or other fine particles from a surface by wind.
- Base: deflation
- Plural: deflation, deflations
asset-price deflation
1falling asset values
Asset-price deflation is when investments like homes or stocks lose value across a market.
- The housing crash led to severe asset-price deflation.
- Asset-price deflation reduced household wealth and made consumers more cautious.
- Analysts worried that falling share prices could turn into broader asset-price deflation.
- Asset-price deflation made homes cheaper.
debt deflation
1falling prices worsen debt
Debt deflation happens when falling prices make existing debts harder to repay.
- The financial crisis raised fears of debt deflation.
- Debt deflation can force households and businesses to sell assets at falling prices.
- Some economists argue that debt deflation made the downturn longer and more severe.
- Debt deflation makes loans harder to pay back.
deflationary pressure
1forces pushing prices down
Deflationary pressure means something in the economy is pushing prices down.
- Lower energy costs added deflationary pressure to the economy.
- Weak consumer demand created deflationary pressures in the retail sector.
- The central bank said it was watching for signs of deflationary pressure.
- Cheap imports can create deflationary pressure.
deflationary spiral
1self-reinforcing price decline
A deflationary spiral is when falling prices make the economy weaker and prices keep falling.
- Policymakers acted quickly to stop the recession from becoming a deflationary spiral.
- Consumers delayed purchases because they expected lower prices, increasing the risk of a deflationary spiral.
- A deflationary spiral can be difficult to reverse once wages and spending start to fall.
- The government wanted to avoid a deflationary spiral.
grade deflation
1stricter grading and lower marks
Grade deflation means students receive lower grades because standards or grading are stricter.
- Students complained that grade deflation in the department hurt their graduate-school applications.
- The policy was meant to fight grade inflation, but critics said it created grade deflation.
- Some universities publish grading data to show whether grade deflation is a real problem.
- Grade deflation made it harder to get an A.
wage deflation
1falling pay levels
Wage deflation means pay levels are going down.
- High unemployment created wage deflation in parts of the service sector.
- The company avoided layoffs, but workers faced wage deflation through pay cuts and fewer paid hours.
- Economists warned that wage deflation would reduce consumer spending.
- Wage deflation means workers earn less.