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
Chris Morris, Fortune, 5 Aug. 2025
In theory, the central bank could help the economy navigate headwinds by adjusting interest rates, but potential stagflation poses difficulty for the Fed.
—Max Zahn, ABC News, 1 Aug. 2025
Meanwhile, measures of inflation continue to pick up, raising the prospect of stagflation.
—Steve Kopack, NBC news, 1 Aug. 2025
But Fed officials also lowered the outlook for economic growth and raised the inflation forecast, sparking concern from some experts about potential stagflation in the U.S. economy, when sluggish growth is accompanied by stubborn price increases.
—Jesse Pound, CNBC, 18 June 2025
See All Example Sentences for stagflation
Cite this Entry
“Stagflation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/stagflation. Accessed 20 Aug. 2025.
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