economics
deflation
A general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit.
Example
"Japan experienced prolonged deflation in the 1990s, making it hard for businesses to grow."
💡 Memory Tip
DE-flation — like deflating a balloon. Prices deflate (go down).
Etymology
From Latin 'deflare' meaning 'to blow away' — like letting air out of a balloon, prices shrink.
Common Misspellings
defationdeflasiondeflatindefletion
Related Terms
See Also
CPI