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1965, apparently coined by U.K. politician Iain Macleod (1913-1970), from stag(nation) + (in)flation.
Attacking the Government's economic policy last night in the House of Commons, Mr. Iain Macleod (West Enfield - Con.) the Opposition spokesman on Treasury and economic affairs, described the present situation in Britain as "stagflation" -- stagnation and inflation together. ["Glasgow Herald," Nov. 18, 1965]
An economic phenomenon of the late 1960s and 1970s characterized by sluggish economic growth and high inflation. The word is a blend of stagnation and inflation.
A simultaneous stagnation and inflation in the economy (1965+)