inflationary spiral
Self-feeding price rise
An inflationary spiral is a self-reinforcing cycle where rising prices lead to higher wages, which increase production costs, which push prices higher still.
The pattern feeds on itself: workers demand raises to keep up with costs, businesses raise prices to cover wages, and the cycle accelerates.
The economy entered an inflationary spiral that took years to break.
Stagnant growth meets inflation
- hyperinflationExtreme rapid price escalation
- recessionProlonged economic decline
- monetary policyCentral bank economic controls
- central bankNational currency management institution
interest rates · quantitative easing · economic growth · GDP · unemployment · fiscal stimulus · devaluation · exchange rate
Economic spending ability
- cost of livingPrice of basic necessities
- affordabilityState of being purchasable
- real incomeEarnings adjusted for prices
- standard of livingEconomic quality of existence
Self-modifying cyclical process
- chain reactionSelf-sustaining causal sequence
- domino effectSequential causation phenomenon
- vicious cycleSelf-perpetuating harmful pattern
- snowball effectAccelerating cumulative increase
acceleration · momentum · compound · escalate · amplify · multiplier · cost-push · expectations
Costs paid by buyers
- commodity pricesCost of traded raw goods
- price surgeSharp cost increase
- price controlsMandated limits on charges
- price gougingExcessive pricing during crises
markup · tariff · surcharge · wholesale prices · retail prices · food prices · housing costs · rent increases
Increase in compensation
- pay raiseHigher compensation rate
- salary increaseHigher compensation rate
- cost-of-living adjustmentPay increase matching inflation
- collective bargainingJoint worker-employer talks
wage demands · minimum wage · living wage · compensation · earnings · union negotiation · real wages · pay scale
stagflation
Stagnant growth meets inflation
- hyperinflationExtreme rapid price escalation
- recessionProlonged economic decline
- monetary policyCentral bank economic controls
central bank · interest rates · quantitative easing · economic growth · GDP · unemployment · fiscal stimulus · devaluation · exchange rate · purchasing power
purchasing power
Economic spending ability
- cost of livingPrice of basic necessities
- affordabilityState of being purchasable
- real incomeEarnings adjusted for prices
feedback loop
Self-modifying cyclical process
- chain reactionSelf-sustaining causal sequence
- domino effectSequential causation phenomenon
- vicious cycleSelf-perpetuating harmful pattern
snowball effect · acceleration · momentum · compound · escalate · amplify · multiplier · cost-push · expectations · indexation
consumer prices
Costs paid by buyers
- commodity pricesCost of traded raw goods
- price surgeSharp cost increase
- price controlsMandated limits on charges
price gouging · markup · tariff · surcharge · wholesale prices · retail prices · food prices · housing costs · rent increases · sticker shock
wage growth
Increase in compensation
- pay raiseHigher compensation rate
- salary increaseHigher compensation rate
- cost-of-living adjustmentPay increase matching inflation
collective bargaining · wage demands · minimum wage · living wage · compensation · earnings · union negotiation · real wages · pay scale
inflationary, inflation, inflate, inflated, inflating, inflator, deflate, deflation, deflationary