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deflationary

American  
[di-flay-shuhn-er-ee] / dɪˈfleɪ ʃənˌɛr i /

adjective

  1. Economics. characterized by or causing a reduction in the supply of available money or credit, typically leading to a decline in prices.

  2. characterized by or having the effect of deflating something.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

The Chinese government last year clamped down on what it saw as excessive competition in the EV industry, fearful that a vicious price war was hurting suppliers and contributing to the deflationary mood.

From The Wall Street Journal • Jun. 12, 2026

In January, regulators said they would investigate competition among food-delivery platforms to rein in price wars that erode profits and contribute to deflationary pressure.

From Barron's • May 23, 2026

It is clear that the war has reversed the deflationary psychology that we were in; we were finally getting over the postpandemic inflationary episode.

From Barron's • Apr. 7, 2026

After a long period of deflationary pressure, a bump in price growth could seem welcome, but analysts note if demand remains weak, supply-side inflation will become a headwind.

From The Wall Street Journal • Apr. 3, 2026

Are asset bubbles indeed inflationary and their bursting deflationary?

From Crime and Corruption by Vaknin, Samuel

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