noun

stagflation

stag-FLAY-shuhn

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Stagflation (noun) means an economic condition in which prices keep rising while growth stalls and unemployment stays high, so the usual trade-off between inflation and jobs breaks down. Example: “Rising energy costs and flat output revived fears of stagflation.”

noun

economics An economic condition in which prices keep rising while growth stalls and unemployment stays high, so the usual trade-off between inflation and jobs breaks down.

"Rising energy costs and flat output revived fears of stagflation."

"Central banks hate stagflation because the cure for one half worsens the other."

How to use stagflation

Learner’s notes

In plain EnglishPrices going up while the economy goes nowhere and people lose jobs.

When to use it

Standard economic vocabulary, common in news reporting. Strongly associated with the 1970s oil shocks.

Memory tip

Inflation alone is not stagflation. You need the stagnation as well: weak or negative growth and rising unemployment at the same time.

Trace the full origin ↓

Easily confused with

inflation → recession → slumpflation deflation →

Common pairings

fears of stagflation 1970s stagflation stagflationary shock slide into stagflation

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C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

Test yourself on “stagflation” A quick quiz — meaning, synonyms & usage →

Fill the gap

Can you complete this real example?

Rising energy costs and flat output revived fears of _____.

Etymology

A blend of stagnation and inflation.

Origin: English

Rhymes for stagflation

region cation ablation allusion emulsion ideation novation diffusion elocution extension oxidation perfusion

See all rhymes for stagflation →

Frequently asked questions

What is the difference between stagflation and inflation?

Inflation is simply a general rise in prices, which often happens when an economy is growing strongly. Stagflation is inflation combined with stalled growth and rising unemployment, which is far harder to treat.

Why is stagflation so hard to fix?

The standard tools pull in opposite directions. Raising interest rates cools inflation but deepens the slump and costs jobs, while stimulating growth pushes prices up further, so policymakers must choose which problem to worsen.

What causes stagflation?

Most commonly a supply shock, such as a sudden jump in oil or food prices, which raises costs across the economy while cutting output. Policy mistakes that let inflation expectations become entrenched can prolong it.

What is the meaning of stagflation?

"stagflation" (noun) means an economic condition in which prices keep rising while growth stalls and unemployment stays high, so the usual trade-off between inflation and jobs breaks down.