Deflation is like when you have a balloon that gets smaller and smaller. Imagine you have a balloon that is full of air, and then the air starts to go out. The balloon gets tinier, just like when prices of things like toys and candy become less expensive. Deflation is when money can buy more things because prices are going down.
Think of it as a magical sale at your favorite toy store where every day, toys cost fewer and fewer coins. You can get more toys with the same amount of money. But if this happens too much, it can be a problem because the store might not make enough money to keep selling toys.
Another way to see it is like a snowball that rolls down a hill. At first, it’s small, but as it rolls, it picks up more snow and becomes bigger. With deflation, it’s the opposite. The snowball is like the prices, and instead of growing, it gets smaller as it rolls. This can make people worried about spending money, which can make the snowball shrink even more.