2. a fall in the average prices of goods and services; -- usually associated with contraction of economic activity. Opposite of inflation. Compare disinflation. [ PJC ]
3. the reduction of available credit or a contraction of economic activity resulting from or associated with a decline of prices. [ WordNet 1.5 ]
4. the act of letting the air out of something. [ WordNet 1.5 ]
5. (Geol.) the erosion of land structures such as sand or soil due to the action of wind. RHUD [ PJC ]
adj. 1. of or pertaining to deflation; as, deflationary signs. [ WordNet 1.5 ]
2. (Economics) associated with or tending to cause decreases in consumer prices or increases in the purchasing power of money; as, deflationary measures. Opposite of inflationary. [ WordNet 1.5 ]
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