Deflation

Pronunciation: /dɪˈfleɪʃən/

Deflation (noun)

  1. A situation where prices for goods and services keep going down over time.
  2. A general decrease in the value of money, often shown by lower prices and weaker demand.
  3. A period when the rate of rising prices becomes smaller, moving toward falling prices.

Examples

  • Deflation happens when prices keep falling.
  • When deflation starts, prices keep falling for many goods.