Rising money supply
Government stimulus is a recent example of this, but a large increase in the money in consumers' pockets typically causes inflation. As a more recent example, when the government spent trillions on an economic stimulus package during the COVID-19 pandemic, we saw a surge in demand for products such as electronics, used cars, and airline tickets. As the money supply rose, prices started to rise.
Supply/demand imbalance
Consider the recent supply chain disruptions in the U.S. It has been next to impossible to buy a new car, the inventory of homes on the market has been at an extremely low level, and many industries have been grappling with various supply chain problems.
Note that this isn't an exhaustive list, although most causes of past periods of stagflation tend to fit into these categories. However, there could be other contributing factors as well. As an example, the end of the gold standard (where currencies were directly linked to gold) is widely considered to have contributed to the stagflation in the U.S. in the 1970s.
Inflation vs. stagflation
Inflation is a broad term that refers to an increase in the prices consumers pay for goods and services as defined by the Consumer Price Index, or CPI. However, the word "inflation" only describes rising prices -- it doesn't have anything to do with things such as unemployment or gross domestic product (GDP) growth.
Stagflation, on the other hand, is a type of inflation that is accompanied by slow or stagnant GDP growth, as well as elevated unemployment. In other words, stagflation refers to a combination of economic conditions, not just one.
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