Stagflation

Stagflation is an economic situation where inflation (rising prices) occurs alongside stagnant economic growth and high unemployment. Typically, inflation and economic growth move in opposite directions, so having both at the same time creates a difficult challenge for policymakers. During stagflation, prices increase while businesses struggle, jobs are scarce, and the economy isn't expanding, making it a tough environment to address because measures to reduce inflation can worsen unemployment, and efforts to boost growth can raise prices further.