Agency Dictionary

Deflationary

adjectivePronunciation: /diːˈfleɪ.ʃən.ər.i/

Economics & Finance

What does “Deflationary” mean?

Tending to cause or associated with a general and persistent decline in price levels across an economy.

Etymology

Formed from deflation with the suffix -ary. Deflation comes from the verb deflate, coined in the late 19th century as the opposite of inflate by exchanging the prefix in- for de-; inflate itself is from Latin inflare, "to blow into", from flare, "to blow". The first sense was the letting of air out of something. The economic sense, a general fall in prices, and the adjective deflationary date from around 1920, in answer to the older economic use of inflation.

Usage note

A term of economics, common in phrases such as deflationary pressure and deflationary spiral. In philosophy it also describes theories that play down the weight of a concept.

Synonyms

disinflationary
price-lowering

Often confused with

disinflationary: Disinflation is a slowing of the rate at which prices rise, with prices still going up; deflation is an actual fall in the general price level.

Word family

deflation
deflate
deflator
deflationist

Rhymes with

stationary
probationary

Usage examples

This may suggest deflationary pressures, which, if persistent, can lead to reduced consumer spending, lower business investment, and economic stagnation.

Concepts

Source editions

Where this entry comes from in the Agency editorial.

Issue.7 - Economy in Crisis Pt.1March 16, 2023Read the edition

Words of the same theme

Consumernoun: An individual or group that acquires, purchases, or consumes physical or commercial goods and services for personal use. In marketing, consumers are studied for purchasing patterns and brand preferences.
brokeragenoun: The business, activity, or fee of a licensed broker who facilitates commercial transactions between buyers and sellers.
cinnamonnoun: An aromatic spice obtained from the stripped inner bark of several tree species of the genus Cinnamomum.
commoditynoun: A basic primary good, agricultural staple, or raw material that is interchangeable with other goods of the same type.
Corporativismnoun: The defence of the interests of a business class or professional group above the general interest, and the culture built around it. The word also names a political and economic system organized through corporations of employers, workers and professions.
Deficitnoun: The amount by which a sum of money falls short of the required or expected amount, particularly when spending exceeds revenue.
denariusnoun: A standard silver coin in ancient Roman currency that served as the principal denomination of daily commerce and military pay.
fiat currencynoun: Government-issued legal tender not backed by a physical commodity such as gold or silver.
Incentivenoun: A motivating factor, reward, or condition that incites or encourages an individual or business to take action.
intangibleadjective: Incapable of being perceived by touch or physical senses, yet possessing recognizable economic or conceptual worth.

Also from these editions: terms

Agoranoun: A public open space in ancient Greek cities used for assemblies, commercial markets, and philosophical dialogue.
Bailoutnoun: An emergency provision of financial assistance to a failing company, bank, or economy to prevent insolvency.
Chitonnoun: A draped garment or tunic worn by men and women in ancient Greece, usually fastened at the shoulders by brooches.
Emporoinoun: Ancient Greek merchants or maritime traders who carried goods between different city-states and overseas ports.
Ephemeraladjective: Lasting for only a very brief period of time; fleeting, transitory, or impermanent in nature.
Eruditeadjective: Characterized by great knowledge, extensive learning, and scholarly cultivation across diverse disciplines.
Himationnoun: An outer garment consisting of a large rectangular mantle draped over the body, worn in ancient Greece.
Hydrianoun: An ancient Greek ceramic water vessel featuring three handles, used for carrying and pouring fresh water.
Oratorynoun: The formal skill, art, or practice of public speaking with eloquence, clarity, and persuasive power.
Stagnationnoun: A state of inactivity, sluggishness, or lack of growth in an economy or commercial system.
Volatilitynoun: The liability to change rapidly and unpredictably, especially in the market price of an asset or security.