inflationary spiral

noun

: a continuous rise in prices that is sustained by the tendency of wage increases and cost increases to react on each other

Examples of inflationary spiral in a Sentence

Recent Examples on the Web
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Paul Volcker raised interest rates and kept them up until the inflationary spiral was broken. Arthur I. Cyr, Chicago Tribune, 26 Aug. 2025 But a Fed driven by a president’s political whims could cut rates or keep them lower than appropriate, risking an inflationary spiral that lasts long beyond the next election. Sylvan Lane, The Hill, 12 Jan. 2026 Second-round effects refer to the more indirect consequences of sudden inflation shocks, such as workers seeking higher wages and firms raising prices, which can lead to an upward inflationary spiral. Holly Ellyatt, CNBC, 30 Apr. 2026 Republican questioning repeatedly returned to the idea tax cuts and deregulation are helping households cope with the cost of living rather than stoking a new inflationary spiral. Nick Lichtenberg, Fortune, 4 June 2026 See All Example Sentences for inflationary spiral

Word History

First Known Use

1931, in the meaning defined above

Time Traveler
The first known use of inflationary spiral was in 1931

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Cite this Entry

“Inflationary spiral.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/inflationary%20spiral. Accessed 8 Jul. 2026.

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