When the economy is slowing down but prices are still going up?

When the economy is slowing down but prices are still rising, it typically indicates a situation known as stagflation. This phenomenon occurs when stagnant economic growth coincides with inflation, leading to increased costs for consumers while job growth and production decline. Factors such as supply chain disruptions, rising commodity prices, or increased production costs can contribute to this scenario, making it challenging for policymakers to address both inflation and unemployment simultaneously. In such cases, consumers may experience reduced purchasing power, resulting in a squeeze on household budgets.