What is Stagflation and How Does it Impact You?

Stagflation is an unusual and troubling economic condition where three things happen at once: inflation stays high, economic growth slows down, and unemployment remains elevated. It’s a term that gained attention in the 1970s and continues to be relevant today, especially as concerns about stagflation in 2025 grow.

➞ Stagflation causes 
Unlike typical economic cycles where inflation rises during growth and falls during recessions, stagflation defies that pattern. It’s often triggered by a combination of supply shocks (like a sudden spike in oil prices), poor economic policy decisions, or external global pressures. These factors push prices up while slowing productivity and job creation.

➞ Stagflation vs inflation
While inflation on its own refers to rising prices, stagflation adds two more layers of difficulty: slow growth and job losses. That combination makes it especially hard to manage, as traditional tools to fight inflation (like raising interest rates) can worsen unemployment.
In this video, we break down what stagflation means, where it comes from, and how it affects everyday life, investments, and the broader economy. 

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