Definition

1. Adjective:
   • Associated with or tending to cause decreases in consumer prices or increases in the purchasing power of money: Describes economic policies, conditions, or forces that lead to a general and sustained reduction in the overall price level of goods and services in an economy.

Usage and Examples

• Adjective:
  • The government implemented deflationary policies to curb inflation.
  • A deflationary spiral can be dangerous for an economy, as falling prices may lead to reduced consumer spending.
  • The central bank's deflationary measures were intended to strengthen the currency's value.

Advanced Usage

• "deflationary pressure": A condition or set of factors that pushes an economy toward deflation.
  • The global economic slowdown created significant deflationary pressure on commodity prices.
• "deflationary trend": A sustained period of declining prices.
  • Economists are concerned about the deflationary trend in the housing market.

Variants and Related Words

• Deflate (verb): To reduce the level of economic activity or cause prices to fall.
  • The new tax policy could deflate consumer demand.
• Deflation (noun): The general decline in prices for goods and services, often associated with a reduction in the supply of money and credit.
  • The country experienced a period of severe deflation.
• Disinflationary (adjective): Describing a slowdown in the rate of price inflation (prices rising more slowly), which is distinct from deflation (prices actually falling).
  • The report showed disinflationary signals, but not outright deflation.

Synonyms

• Price-reducing: Causing a decrease in prices.
• Anti-inflationary: Intended to counteract or reduce inflation (can overlap with deflationary when the goal is to lower price levels).

Antonyms

• Inflationary: Tending to cause a general increase in prices and a fall in the purchasing value of money.
• Expansionary: (Of monetary or fiscal policy) tending to increase economic activity and, often, price levels.

Adjective

1. associated with or tending to cause decreases in consumer prices or increases in the purchasing power of money
   • deflationary measures