imply and infer

To imply means to state indirectly.
To infer means to deduce.

Imply

The verb to imply means to state indirectly (i.e., to include a suggestion in a message).

Examples:

Infer

The verb to infer means to deduce (i.e., to extract a suggestion from a message).

Examples:

TRANSMITTERS AND RECEIVERS

When you imply, you transmit an indirect message. When you infer, you receive the indirect message. What's an indirect message? An indirect message is the one said to be between the lines. For example:
People ask "What are you inferring?" all the time. The overwhelming majority of the time, this is wrong. If they're being stroppy, you can slam them with: "Inferring? I don't understand. Oh, I see. I was implying...."

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See Also

What are adjectives? What are verbs? List of easily confused words