A term coined in the late 1960s to describe the state of the economy at that time, that is, rising prices (inflation) accompanied by insufficient economic expansion (stagnation) and consequently increasing unemployment.
-- From "Dictionary of Business and Economics" (Christine Ammer, Dean S. Ammer, 1986): @
The term was believed to have been coined by MP Iain Macleod during a debate on November 17, 1965 in Britain's House of Commons:
We now have the biggest gap between productivity and earnings of any time in modern economic history. ... We now have the worst of both worlds -- not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of "stagflation" situation and history in modern terms is indeed being made.
-- From Hansard: @