deflation

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Deflation

Decline in the prices of goods and services. Antithesis of inflation.

Deflation

A situation in which a currency gains value, often resulting from a decrease in prices. Many economists believe that deflation is the result a fall in demand for goods and services, which causes producers to reduce prices. This reduces their profits and causes a reduction in investment, which contributes to a further drop in demand. Because of this deflationary spiral, deflation is often associated with recessions and depressions and has been known to cause unemployment. It is also called negative inflation. See also: Lost Decade, Inflation.

deflation

A reduction in consumer or wholesale prices. The term generally applies to more than just a temporary decline. Compare inflation. See also disinflation.

Deflation.

Deflation, the opposite of inflation, is a gradual drop in the cost of goods and services, usually caused by a surplus of goods and a shortage of cash.

Although deflation seems to increase your buying power in its early stages, it is generally considered a negative economic trend. That's because it is typically accompanied by rising unemployment, falling production, and limited investment.

deflation

a fall in the rate of growth of the general level of prices in an economy, or an absolute reduction in the general level of prices (see PRICE INDEX). The authorities may seek to deflate the economy in order to combat INFLATION and eliminate a BALANCE OF PAYMENTS deficit by using restrictive monetary and fiscal measures, i.e. increasing interest rates and taxes to cut spending. See ECONOMIC POLICY, MONETARY POLICY, FISCAL POLICY, PRICES AND INCOMES POLICY.

deflation

a reduction in the level of NATIONAL INCOME and output usually accompanied by a fall in the general price level (DISINFLATION).

A deflation is often deliberately brought about by the authorities in order to reduce INFLATION and to improve the BALANCE OF PAYMENTS by reducing import demand. Instruments of deflationary policy include fiscal measures (e.g. tax increases) and monetary measures (e.g. high interest rates). See MONETARY POLICY, FISCAL POLICY.

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l1] We estimate that the wealth shock caused by n 1 percent price deflation leads to a 0.
Non-food has recorded annual price deflation in 22 of the last 23 months and remains "significantly down on a year ago".
A tripartite strategy for global reflation would bring major benefits to the world economy with minimum cost,'' they said, adding China should also be involved because it, too, is undergoing price deflation despite high growth performance.
Another major export, oil, is experiencing price deflation.
The net sales increase was due to incremental sales from the acquired VG's Food and Pharmacy stores (VG's) and the opening of additional fuel centers, but was partially offset by the persistent weak economic conditions, continued price deflation, competitive activity and the continued shift in mix toward more private label sales.
With sales growth restrained by currency exchange fluctuations and product price deflation, adjusted earnings for the first quarter at Costco Wholesale Corp.
The report predicts shop price deflation will move closer to zero at the turn of the year and "could even move into inflationary territory" at some point during the first half of next year.
Food price deflation and falling fuel prices have enabled our customers to treat themselves over the festive period.
After eight years of my potato odyssey, I had a Cheap as Chips first - price deflation.
It added that the rate of year-on-year price deflation in shoes, footwear and electrical goods slowed to 2.
Waitrose shrugged off food price deflation that has hit many rivals, with same store sales growth of up to 4.