deflation

In economics, when prices drop it's called deflation. Deflation makes money more valuable — prices are lower, so you can buy more with it. But deflation is also what happens to a tire if it runs over a nail. Bummer.

When economists talk about inflation, they mean that prices are very high, and it takes more cash to buy things. Deflation is the opposite—it's also known as a negative inflation rate. Deflation is dangerous for the economy, and it's connected with era like the Great Depression of the 1930s. Deflation literally means "a loss of air," and you can use it that way too: "The deflation of my tires meant I wasn't going anywhere."

Definitions of deflation
  1. noun
    the act of letting the air out of something
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    Antonyms:
    inflation
    the act of filling something with air
    type of:
    decrease, diminution, reduction, step-down
    the act of decreasing or reducing something
  2. noun
    a contraction of economic activity resulting in a decline of prices
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    Antonyms:
    disinflation
    a reduction of prices intended to improve the balance of payments
    inflation, rising prices
    a general and progressive increase in prices
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    type of:
    economic process
    any process affecting the production and development and management of material wealth
  3. noun
    (geology) the erosion of soil as a consequence of sand and dust and loose rocks being removed by the wind
    “a constant deflation of the desert landscape”
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    type of:
    eating away, eroding, erosion, wearing, wearing away
    (geology) the mechanical process of wearing or grinding something down (as by particles washing over it)