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Stagflation
Stagflation combines weak economic growth, often with rising unemployment, and high inflation. It is hard to fight because the usual cure for inflation, higher interest rates, slows growth further.
Why It Matters
Oil shocks are the classic cause, because expensive energy raises prices and slows the economy at once.
In India
The oil crises of the 1970s produced stagflation in many countries. India’s 2026 oil shock pushed the RBI’s forecasts toward lower growth and higher inflation together.
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