But many have offset the damage, at least in part, with wage increases driven by high demand for workers and resilient consumer spending. Such an outcome would bring about stagflation — a mix of the words stagnation and inflation — which describes an economy with low growth and high prices. On rare occasions, however, high inflation persists even as the economy slows and unemployment rises, resulting in stagflation, she said. Why stagflation mattersStagflation hurts people in two different ways, Harvey told ABC News. What stagflation means and why it matters originally appeared on abcnews.go.com

Source: ABC News June 14, 2022 16:01 UTC