deflation
noun [ U ]
uk/dɪˈfleɪʃən/ us ECONOMICS
an economic situation in which prices fall and there is a reduction in wages and government spending, and low levels of growth:
Global deflation is squeezing profits and extinguishing jobs.
He warned that Euroland could sink into deflation unless the central bankers tailored their policies to promote economic growth.
In monetary deflation, a contracting money supply causes prices and demand to decline.
a situation in which the value or price of something is reduced:
The current deflation of home prices is having a profound effect on American society.
The price of cars, computers, and dishwashers have all been falling as global deflation in traded goods gathers pace.
asset deflation.
Compare
disinflation
inflation
reflation