But deflation is not defined that way. It's defined as a decline of the general price level, and this is measured using a basket of goods that is intended to reflect general prices. You can pick holes in the problem of measuring 'general' prices if you want, but that is nevertheless the definition.
deflation is not defined that way. It's defined as a decline of the general price level
And the term "general" is also defined. It can mean general within a nation. It can mean general worldwide. It can mean general on a continent. It can mean general in a state. It can mean general in an economic sector (food, computers, cars, clothes, houses, etc.). Etc.
Why would it be OK to use the word "temperature" in different contexts, but not the word "deflation"? What about the word "pressure"? Should we use a different word for tire pressure, because of the fact that "pressure" is also used in other contexts?
If temperature meant 'global temperature' then it would indeed be wrong to use it to describe your room temperature. But it doesn't mean that, so it isn't.
There is a general temperature in my refrigerator. There are also more-specific temperatures in my refrigerator. Each of those specific temperature areas can also be described as general, because within-them are yet more temperatuire areas and of even-greater specificity.
There is also a general temperature of my home. The general temperature of my fridge contributes to that. In turn, the general temperature of the top shelf of my fridge contributes to the general temperature of my fridge.
You are going to have to go after a lot of people and criminally prosecute them for illegally using the term "deflation" instead of the legal term "falling prices". http://www.google.com/search?q=deflation+prices+housing There are over 2 million Google hits for housing-price deflation, alone.
