Stagflation is a term used to refer the dismal economic situation in which there is high inflation, low growth and rising unemployment. It’s a problem that has bedeviled many economies throughout history, and it can mean disaster for businesses who have to grapple with shrinking profits, rising input costs and decreasing customer demand. Stagflation can be caused by many factors, including price shocks due to commodity prices or trade wars, increased government spending, or low productivity and technological stagnation. The significance of stagflation is that it means businesses will have to innovate and invest if they want to survive during these difficult economic times.