Definition

A situation in which an economy experiences slow growth, high inflation, and high unemployment at the same time.

Example

The country is facing stagflation, making it difficult for people to find jobs while prices continue to rise.

Conversation

Have you heard about the latest news on the economy?

Yeah, it's pretty alarming with all that talk of stagflation.

I know, right? It's tough to see how people are coping with high prices and unemployment.

Exactly! It feels like a really challenging time for everyone.

Synonyms & Antonyms

Root Explanation

Stagflation is a blend of 'stagnation' (from Latin 'stagnare', meaning to stagnate or stand still) and 'inflation' (from Latin 'inflatio', meaning to inflate or swell). The term describes an economic situation where stagnant growth and inflation occur simultaneously.

Memory Tip

Think of an economy that is 'standing still' ('stagnation') while prices are 'swelling' ('inflation') — that's what stagflation means.

Visually Confused Words