stagflation UK /ˌstæɡˈfleɪʃn̩/US /ˌstæɡˈfleɪʃ(ə)n/ noun1 •Prolonged high inflation accompanied by stagnant growth, often with recession and high unemployment.Moving into the mid-1970s, America's economic performance suffered. Stagflation—inflation combined with minimal economic growth—eroded wages and profits, weakening business and consumer confidence. — 2013 formsstagflations