stagflation

noun

stag·​fla·​tion ˌstag-ˈflā-shən How to pronounce stagflation (audio)
: persistent inflation combined with stagnant consumer demand and relatively high unemployment
stagflationary adjective

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Stagflation is a portmanteau, that is, a word that blends two others (in this case, "stagnation" and "inflation"). The first documented use of the word appeared in 1965 in the writing of British politician Iain Macleod, who wrote, "We now have the worst of both worlds - not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of 'stagflation' situation." Macleod is often credited with coining the term, and his linguistic invention was quickly embraced by economists in the United States, who used it to refer to the period of economic sluggishness and high inflation that affected the country in the 1970s.

Examples of stagflation in a Sentence

Recent Examples on the Web
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The Federal Reserve warned of stagflation in its May meeting, owing to high tariffs implemented by U.S. President Donald Trump in April. Brian Evans,sawdah Bhaimiya, CNBC, 14 May 2025 Blame sticky prices, volatile tariffs, and a macroeconomic crystal ball clouded by stagflation fears. Quartz Staff, Quartz, 13 May 2025 The massive tariffs, along with lesser fees on other nations’ imports, were expected to sharply increase prices for U.S. consumers and sap their purchasing power, resulting in an unusual tandem of high inflation and slow growth, or stagflation. Paul Davidson, USA Today, 13 May 2025 Economists warn that tariffs could trigger stagflation or a recession, further pressuring companies to downsize. Jack Kelly, Forbes.com, 10 May 2025 See All Example Sentences for stagflation

Word History

Etymology

blend of stagnation and inflation

First Known Use

1965, in the meaning defined above

Time Traveler
The first known use of stagflation was in 1965

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Cite this Entry

“Stagflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stagflation. Accessed 20 May. 2025.

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