- 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.