Deflationary Pressure
Definition
This is an economic condition where there's a decrease in general price levels or a negative inflation rate. It often happens when supply is higher than demand.
Analogy
Imagine you're at a yard sale with tons of items but very few buyers. To sell anything at all, you might have to lower your prices. That's deflationary pressure - too many goods or services chasing too few buyers leading to falling prices.
Related terms
Inflation: The rate at which general level of prices for goods and services is rising.
Stagflation: A condition of slow economic growth (stagnation) and relatively high unemployment accompanied by rising prices (inflation).
Hyperinflation: Extremely rapid or out-of-control inflation.
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