deflation

(redirected from Negative Inflation)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial.

deflation:

see inflationinflation,
in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S.
..... Click the link for more information.
.

deflation

(ECONOMICS) a decrease over time in the general level of prices, coupled with an overall reduction in the level of economic activity, new investment, etc. (compare INFLATION). In modern capitalist economies, in which inflation tends to be endemic, deflation is usually relative rather than absolute, involving a reduction in rates of price increase rather than an absolute decrease in prices.

Deflation

 

the decrease of monetary volume by means of the withdrawal from circulation of excess paper money. Deflation often precedes monetary reforms. Since World War II deflation has most often been encountered as part of the so-called deflation policy of capitalist states, which aims at stopping or decreasing the rates of growth of monetary volume and commodity prices. Deflation is realized through limitation of credits (an increase in the rate of interest, imposition of credit limits), higher taxes, reduction of expenditures for social and cultural needs, a “freeze” on wages and salaries, and other measures carried out by capitalist states. These measures result in a lowering of the rate of economic development, a deterioration in the living conditions of the toiling masses, and an intensification of the class struggle.


Deflation

 

the disintegration of rocks and soils owing to wind action, accompanied by the removal and wearing away of the broken particles. Deflation is particularly strong in those parts of deserts from which dominant winds blow (for example, in the southern part of the Karakumy desert). The processes of deflation and physical weathering result in the formation of eroded cliffs with unusual shapes, such as towers, columns, and obelisks.

deflation

[di′flā·shən]
(geology)
The sweeping erosive action of the wind over the ground.

deflation

1. Economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices
2. Geology the removal of loose rock material, sand, and dust by the wind
References in periodicals archive ?
In January, negative inflation annual rates were observed in twenty-three EU Member States Drop in prices of fuels for transport, heating oil and telecommunications had the biggest downward impacts on inflation, it noted.
A short period of negative inflation is likely to boost the economy but it could slow pay growth.
The Eurozone slipped into negative inflation in December 2014 (-0.
The expectation is also that both the UK and the US will experience negative inflation for at least a portion of 2015.
Saying that the zone could see negative inflation this year, he added, 'Our possibilities are limited.
The fear of deflation is so great at the moment that many see the slide into negative inflation as being bad news, the idea being that it raises the expectation of generally lower prices for all goods and services and this stunts demand.
We now expect a negative inflation rate in the coming months and that is something that every central bank has to look at very closely," Constancio was quoted as saying in an interview due to be published on Monday.
6% cheapening of the national currency (Q1 2014), which means appreciation of import and negative inflation expectations of population," the forecast says.
Meanwhile, supermarket price wars continued to keep a lid on food and non-alcoholic beverages, which saw a third month in a row of flat or negative inflation - the longest period in nearly a decade.
50, nearly two-thirds of it coming from the interest and the rest is due to the negative inflation rates, Bulgarian 24 Chasa infroms.
Despite the negative inflation seen in recent months, [IMF] staff expects average inflation in 2014 to remain around last year's level, with recent downward pressures to be offset by a stabilisation of utility prices and by the pass-through to prices of VAT increases taking effect this year.
It also presents the results of its application in the quantification of consumer inflation perception and expectations in the euro area and Ireland - the economy, in which the recent financial crisis led to the most negative inflation among the euro zone economies.