From Longman Business Dictionary
stagflationstag·fla·tion /stægˈfleɪʃən/ noun [uncountableU]ECONOMICS an economic condition in which there is inflation but the economy is not growing, so many people do not have jobs and businesses are not doing well. This word is a combination of the words stagnation and inflationMost of the downtown stores have been driven out of business by stagflation.