• A reduction in the rate of inflation either as a result of government policy or of declining economic activity.

compression, deflation, decrease, shrinkage

Related Terms and Acronyms

  • Depression Definition,
    • A prolonged downturn in the economy and level of business activity.
  • Inflation Definition,
    • A rise in the average level of prices in the economy.
  • Inflation Protection Definition,
    • A protection found in some insurance policies that allows policy limits to increase with inflation.
  • Inflation-Protected Annuity Definition,
    • An annuity that guarantees a return equal to or above inflation.
  • Recession Definition,
    • A prolonged period (popularly defined as two successive quarters) in which economic activity shrinks.
  • Stagflation Definition,
    • A time period where the unemployment rate and the rate of inflation are both relatively high.
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