deflatede·flate /ˌdiːˈfleɪt, ˌdɪ-/ verb [intransitiveI, transitiveT]ECONOMICS1if a government deflates the economy, it reduces the demand for goods and services by raising interest rates and taxes, limiting wage increases, reducing government spending, or a combination of theseRaising interest rates too high could deflate the economy into a serious financial crisis.
2if the price of something deflates, it goes downIs the company’s stock likely to deflate further?
→ compare reflate