Recently I often hear or read the expression 'deflationary environment' as something bad for he economy. I may assume that its opposite might be something good, but what is the opposite of deflationary. Plus, what is a more appropriate way to say that a deflationary environment is 'bad' for the economy.
The opposite is inflationary environment, that is a context where prices increase.
A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum.
As for a better way to say that deflation is something 'bad' you may say that a deflationary environment has a negative impact on the economy in general.
When we talk of economy, 'deflationary measures' is the term most frequently used. It refers to measures associated with or tending to cause decrease in consumer prices or increases in the purchasing power of money.
Deflationary environment would be one which would be adapting such measures to decrease inflation.
The opposite would be inflationary environment.
of, characterized by, or tending to cause monetary inflation.
Source: Oxford Living Dictionaries: English.