Inflation vs. Deflation — What's the Difference?

In economics, inflation (or less frequently, price inflation) is a general rise in the price level of an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy.

In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate).

The act of inflating or the state of being inflated.

The act of deflating or the condition of being deflated.

A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money.

A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money.

The rate at which this increase occurs, expressed as a percentage over a period of time, usually a year.

The lifting and removal of small, loose particles, especially silt and clay particles, by eddies of wind.

An act, instance of, or state of expansion or increase in size, especially by injection of a gas.

An act or instance of deflating.

(economics) An increase in the general level of prices or in the cost of living.

(economics) A decrease in the general price level, that is, in the nominal cost of goods and services as well as wages.

(economics) A decline in the value of money.

An economic contraction.

(economics) An increase in the quantity of money, leading to a devaluation of existing money.

(geology) The removal of soil and other loose material from the ground (or another surface) by wind, leaving it exposed to erosion.

Undue expansion or increase, as of academic grades.

The act or process of deflating.

(cosmology) An extremely rapid expansion of the universe, theorized to have occurred very shortly after the big bang.

A fall in the average prices of goods and services; - usually associated with contraction of economic activity. Opposite of inflation. Compare disinflation.

The act or process of inflating, or the state of being inflated, as with air or gas; distention; expansion; enlargement.

The reduction of available credit or a contraction of economic activity resulting from or associated with a decline of prices.

The state of being puffed up, as with pride; conceit; vanity.

The act of letting the air out of something.

Persistent expansion or increase in the general level of prices, usually caused by overissue of currency, and resulting in a reduced value of the currency. It is contrasted with deflation, and is when it occurs to a very high degree is called hyperinflation.

The erosion of land structures such as sand or soil due to the action of wind.

A general and progressive increase in prices;

(geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind;

(cosmology) a brief exponential expansion of the universe (faster than the speed of light) postulated to have occurred shortly after the big bang

A general and progressive increase in prices;

Lack of elegance as a consequence of being pompous and puffed up with vanity

The act of letting the air out of something

The act of filling something with air