stagflation: meaning, definition, pronunciation and examples
C1Formal, Academic, Journalistic
Quick answer
What does “stagflation” mean?
A problematic economic condition characterized by persistent high inflation combined with high unemployment and stagnant demand.
Audio
Pronunciation
Definition
Meaning and Definition
A problematic economic condition characterized by persistent high inflation combined with high unemployment and stagnant demand.
A portmanteau describing an economy experiencing the simultaneous negative phenomena of 'stagnation' (lack of growth, high unemployment) and 'inflation' (rising prices). It represents a failure of the traditional economic model where inflation and unemployment were seen as trade-offs.
Dialectal Variation
British vs American Usage
Differences
No significant spelling or usage differences. The concept is identical in both economic contexts.
Connotations
Strongly negative in both varieties. Often evokes memories of the 1970s economic crises.
Frequency
Frequency spikes during periods of economic distress. Slightly more common in UK media discussing historical context (1970s UK crises).
Grammar
How to Use “stagflation” in a Sentence
[Economy/Country] + experiences/faces/enters + a period of stagflationAnalysts fear/warn of + stagflationThe risk/threat of + stagflation + [verb]Vocabulary
Collocations
Examples
Examples of “stagflation” in a Sentence
verb
British English
- The economy is in danger of stagflating, according to the Bank's latest forecast.
American English
- Many worry the Fed's actions could stagflate the economy further.
adjective
British English
- The chancellor warned of a stagflationary spiral if energy prices remain high.
American English
- Analysts issued a report on stagflationary risks in the coming quarter.
Usage
Meaning in Context
Business
Used in financial reports, analyst briefings, and risk assessments to describe a worst-case scenario for markets and corporate profits.
Academic
A key term in macroeconomics, used to analyse policy failures, Phillips curve breakdowns, and supply shocks.
Everyday
Used in news discussions about rising living costs coupled with job losses or a weak economy.
Technical
Precisely defined as high inflation concurrent with high unemployment and slow or negative GDP growth.
Vocabulary
Synonyms of “stagflation”
Strong
Neutral
Weak
Vocabulary
Antonyms of “stagflation”
Watch out
Common Mistakes When Using “stagflation”
- Using it to describe any inflation. Must include the stagnation/high unemployment element.
- Spelling: 'stagflation' not 'stagflation'.
- Pronouncing it as /steɪgˈfleɪʃən/ instead of /stæɡˈfleɪʃən/.
FAQ
Frequently Asked Questions
The term gained prominence in the 1970s during the oil crisis, when many Western economies experienced simultaneous high inflation and high unemployment.
No, it is considered a rare and severe economic condition because inflation and economic stagnation typically oppose each other in conventional economic theory.
It is often caused by a negative supply shock (like a sudden oil price spike) that raises costs and slows production, combined with loose monetary policy or other factors maintaining inflationary pressure.
It is notoriously difficult to combat. Policy often focuses on supply-side measures to increase productivity and targeted interventions, as traditional demand management tools are ineffective or counterproductive.
A problematic economic condition characterized by persistent high inflation combined with high unemployment and stagnant demand.
Stagflation is usually formal, academic, journalistic in register.
Stagflation: in British English it is pronounced /staɡˈfleɪʃ(ə)n/, and in American English it is pronounced /stæɡˈfleɪʃən/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “A perfect storm of stagnation and inflation”
Learning
Memory Aids
Mnemonic
Imagine a STAGnant (not moving) economy that's also on FIRE with inflation = STAG-FLATION.
Conceptual Metaphor
ECONOMY IS A PATIENT with a complex syndrome (two illnesses at once). ECONOMY IS A MACHINE that is both overheating (inflation) and seizing up (stagnation).
Practice
Quiz
Which of the following scenarios best describes 'stagflation'?