reflation

American  

[ri-fley-shuhn] / rɪˈfleɪ ʃən /

noun

1. restoration of economic activity, consumer prices, etc., to higher levels by manipulating monetary policy.

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reflation British  

/ riːˈfleɪʃən /

noun

1. an increase in economic activity

2. an increase in the supply of money and credit designed to cause such an increase

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Other Word Forms

• reflationary adjective

Etymology

Origin of reflation

First recorded in 1930–35; re- + (in)flation

Example Sentences

A flood of economic data is in store for China watchers, coming on the heels of data that sent encouraging signals on reflation.

From The Wall Street Journal • Apr. 10, 2026

“We expect a flat initial fiscal envelope, a continued focus on tech and public capex, and reactive guardrails for consumption and property—keeping reflation a slow burn,” MS said.

From The Wall Street Journal • Mar. 2, 2026

“That all looks to me much more like a reflation trade than a debasement trade,” Pasquariello said, referring to the prospect for a fiscal boost in Japan and the recent talk of waning dollar attractiveness.

From MarketWatch • Feb. 16, 2026

The Gavekal team, in a separate year-end briefing, also flags reflation risk—but sees it as an opportunity, particularly in cyclical stocks that have been left in the bargain bin.

From Barron's • Jan. 2, 2026

"We are sticking with reflation trades and we are looking for yields to rise sharply to 2% by year-end as the market gets more comfortable with the Delta variant."

From Reuters • Jul. 27, 2021