High inflation combined with stagnant economic growth and rising unemployment.
Particularly painful because conventional policy responses conflict — fighting inflation requires tightening (which hurts growth); fighting unemployment requires easing (which fuels inflation). 1970s US is the textbook case. Central banks fear stagflation above almost all else.
High inflation combined with stagnant economic growth and rising unemployment. Particularly painful because conventional policy responses conflict — fighting inflation requires tightening (which hurts growth); fighting unemployment requires easing (which fuels inflation). 1970s US is the textbook case. Central banks fear stagflation above almost all else.
In economics, Stagflation is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Particularly painful because conventional policy responses conflict — fighting inflation requires tightening (which hurts growth); fighting unemployment requires easing (which fuels inflation). 1970s US is the textbook case.
HSBC strategists warned the Philippines is flirting with stagflation as slowing GDP growth coincides with the highest inflation rate in ASEAN
Jun 27, 2026
US housing starts plunged 15.4% in May far above expectations while import prices surged 1.9%, creating a stagflationary signal of slowing construction and persistent inflation.
Jun 17, 2026
US Producer Price Index growth surged in May, exceeding expectations and signalling persistent upstream inflation that could complicate the Federal Reserve's policy decisions.
Jun 12, 2026
The Quick Take * S&P 500 extended gains to fresh record highs, driven by AI-related momentum per Deutsche Bank * Lower oil prices helped ease stagflation fears, boosting US equity sentiment * Deutsche Bank's Jim Reid flagged AI optimism and falling energy costs as twin tailwinds * Continued AI-driven momentum and oil price trajectory will be key determinants of near-term direction * Record US equity highs lift risk appetite globally, with positive spillover likely for Asian tech and AI-lin
May 11, 2026
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