deflationary
dee-FLAY-shuh-nair-ee
/ˌdiː.fleɪ.ʃən.ər.i/
Causing or accompanied by a drop in general price levels or a reduction in economic output.
Describes economic environments where prices shrink continuously, often leading consumers to delay purchases.
The story behind the word. From Latin de- (down) and flare (to blow). Literally letting air out of an inflated balloon, causing economic price volumes to shrink.
Word relationships
- contractile: Contractile is a biological/physical term; deflationary is specifically macroeconomic.
- inflationary: Inflationary describes rising prices, while deflationary describes falling prices.
Commonly confused with
- inflationary: Deflationary decreases general price levels, whereas inflationary raises them.
Word family
- deflate (verb): To reduce money supply or lower price levels.
- deflation (noun): General decline in price levels.
Collocations
- deflationary spiral
- deflationary pressure
- deflationary risk
Example sentences
- "Central banks fear deflationary spirals because falling prices lead consumers to postpone purchases, stalling growth." Macroeconomic policy
- "The Great Depression was marked by severe deflationary pressures that devastated industrial output." Economic history
Memory hook
DE-FLATE: blowing air OUT causes prices to drop DOWN. Prices letting out air and dropping.
When not to use
Do not use to describe physical objects losing air, like flat car tires.
Fun facts
- Central banks typically prefer low inflation over any deflationary trend because deflation is extremely difficult to break.
Related words
Explore more words
Also appears in
Take your vocabulary further with LangBlitz
Our English vocabulary app: FSRS spaced repetition, 5,000+ curated words across 119 topic groups, CEFR A1 to C2. Explore your mastery with the beautiful Vocabulary World feature.