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RE: DEFLATION
Thank you for your perspective. The term applies to both conditions, in the context in which it is used here it pertains to the price inflation. Please see the referenced definition from Investopedia to help you further understand the concept.
Prices do not suffer inflation. Prices suffer "increase." This is a sign of inflation.
The term inflation is applied to the economy.
Then we will have an economic process caused by the imbalance between production and demand; it causes a continuous rise in the prices of most of the products and services, and a loss of the value of the money to be able to acquire them or make use of them.
An excess of monetary liquidity is a sign of inflation. That is, there is too much money circulating. This money is inorganic, without backing. Therefore it has no real value. Many pieces of money are needed to acquire few goods.
That is inflation.