stagflation
noun
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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
Jake Angelo, Fortune, 7 Apr. 2026
Thus stagflation could not be managed by traditional monetary policy, varying the money supply and hence interest rates — or by fiscal policy, varying government taxing and spending.
—Edward Lotterman, Twin Cities, 5 Apr. 2026
The European Central Bank is considering raising rates, but analysts said the war could cause European stagflation as higher prices hit demand in a region already struggling for growth.
—Andrew Edgecliffe-Johnson, semafor.com, 2 Apr. 2026
Still, many experts, including Federal Reserve Chairman Jerome Powell, maintain that the risks of stagflation reoccurring remain low.
—Becca Stanek, TheWeek, 1 Apr. 2026
See All Example Sentences for stagflation
Cite this Entry
“Stagflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stagflation. Accessed 11 Apr. 2026.
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