What economic term describes a recession occurring at the same time as falling prices?

A recession occurring at the same time as falling prices can be described as a deflationary recession.

Deflation means a sustained decline in the general price level, while a recession means a significant decline in economic activity. When both occur together, falling demand can reduce businesses’ sales and revenues, encouraging them to cut production, investment, and employment. Lower incomes can then weaken demand further.

Deflation can also increase the real burden of debt because borrowers must repay fixed amounts with money that has greater purchasing power. That effect can put additional pressure on households, companies, and banks.

This term should not be confused with disinflation, which means that prices are still rising but at a slower rate. It also differs from stagflation, which combines weak economic conditions with inflation rather than falling prices. The exact boundary between recession and other downturns depends on the definition used.