A rare and harmful economic condition where high inflation occurs at the same time as high unemployment and stagnant economic growth. The word combines 'stagnation' and 'inflation.' Stagflation is particularly painful because it combines rising prices with fewer jobs and slower business activity, leaving people worse off on multiple fronts.
In the 1970s, the United States experienced stagflation: prices for gas and groceries rose sharply while unemployment climbed and the economy barely grew. People faced both higher bills and difficulty finding or keeping jobs.
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