stagflation

American  

[stag-fley-shuhn] / stægˈfleɪ ʃən /

noun

1. an inflationary period accompanied by rising unemployment and lack of growth in consumer demand and business activity.

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stagflation British  

/ stæɡˈfleɪʃən /

noun

1. a situation in which inflation is combined with stagnant or falling output and employment

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stagflation Cultural  

1. An economic phenomenon of the late 1960s and 1970s characterized by sluggish economic growth and high inflation. The word is a blend of stagnation and inflation.

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Etymology

Origin of stagflation

First recorded in 1965–70; stag(nation) ( def. ) + (in)flation

Explanation

Economists use the term stagflation to describe a situation in which prices and unemployment are both high, and economic growth is slow. This economic situation is an unfortunate combination of longterm inflation (when the cost of living keeps going up) and a stagnant economy. The term stagflation was coined in the 1960s, but it became widely used by economists in the 1970s, when an oil crisis caused just this situation in many countries worldwide. Prior to that period, most experts believed that high inflation could only lead to low rates of unemployment.

Example Sentences

Stagflation fears returned as investors bet an oil and gas-induced inflationary shock forces central banks to hold rates steady, or even to consider hikes.

From The Wall Street Journal • Mar. 31, 2026

Stagflation occurs when slower growth coincides with a period of higher inflation.

From The Wall Street Journal • Mar. 27, 2026

Stagflation was coined in the 1970s, when surging inflation and a poor economy saw interest rates at close to 20% and unemployment at around 10%.

From MarketWatch • Mar. 7, 2026

Stagflation, however, might prove to be the knockout punch.

From Barron's • Mar. 6, 2026

It is about the Trias Politica, the Great Depression and Stagflation, wars, and a suggestion of a constitutional amendment.

From Definition & Reality in the General Theory of Political Economy by Colignatus, Thomas