inflationary spiral

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inflationary spiral

n
(Economics) the situation in which price and income increases may each induce further rises in the other

infla′tionary spi′ral


n.
a cycle of worsening inflation as higher prices result in higher wages, increasing costs and resulting in still higher prices.
[1930–35]
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.inflationary spiral - an episode of inflation in which prices and wages increase at an increasing rate and currency rapidly loses value
spiral - a continuously accelerating change in the economy
deflationary spiral - an episode of deflation in which prices and wages decrease at an increasing rate and currency gains in value
References in periodicals archive ?
(TAP) -The Central Bank of Tunisia (BCT) explained the raising of its key interest rate by "past and recent wage increases that are likely to maintain a price-wage spiral which is very detrimental to the economy and to accentuate macro-economic imbalances because of their impact on the consumption of imported products."
There was a classic price-wage spiral. But a spiral isn't inevitable, as a new economic study shows.
The ECB needs to do this in order to prevent imported inflation from food and energy prices triggering a price-wage spiral in Europe's heavily unionized economy.
Over the past six months, food and energy prices have risen at an annualized rate of 17 percent, prompting speculation of a possible price-wage spiral that will result in rampant inflation.

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