Stagflation: That is an economic downturn coupled with rising prices - Journal (english) 07.07.2008 In Depth 10 UTC

And there's another spectre haunting economists and politicians: Stagflation -- that's an economic downturn coupled with rising prices. Here in Germany, where the economy has made a tentative recovery after years of virtual stagnation, there's growing concern that higher prices will lead to exorbitant wage claims... as workers find that their pay is no longer enough to pay the rent, put food on the table AND run a car. ((In a nation where one in four jobs depends either directly or indirectly on the auto industry, that could have far-reaching economic implications -- while on the other hand, )) Wage inflation can also have disastrous effects, as our next scenario shows.