inflation spiral
Self-feeding price rises
An inflation spiral is a self-reinforcing cycle where rising prices lead to higher wages, which in turn drive prices still higher.
Workers demand more pay to keep up with costs; businesses raise prices to cover increased labor expenses; the cycle continues.
Also called a wage-price spiral.
The central bank raised interest rates aggressively to break the inflation spiral.
- hyperinflationExtreme rapid price escalation
- pricesAmounts charged for goods
- wagesPayment for work
- currencyMedium of exchange
- paper moneyCurrency in bill form
runaway prices · devaluation · runaway · vicious cycle · cost-push · stagflation · purchasing power · monetary · economic collapse · Weimar · wheelbarrow · bread lines · shopping cart · printing press · price controls · central bank · money printing · interest rates
- inflationCPI, price hikes, hyperinflation, stagflation, cost of living
- runaway effectschain reaction, domino effect, snowball effect, runaway effect, feedback loop
- vicious cyclesvicious cycle, feedback loop, debt cycle, cycle, catch-22
- global crisesclimate crisis, financial crisis, debt crisis, energy crisis, food crisis