Definition

Adjective 1. Relating to or characterized by inflation (economic): Describes a state, condition, or policy that involves a general increase in prices and a fall in the purchasing value of money. 2. Tending to cause inflation: Describes factors, pressures, or actions that are likely to lead to a sustained rise in the general price level.

Usage

The word "inflationary" is primarily used in economic and financial contexts to describe conditions, trends, policies, or data that are linked to or likely to produce inflation. It is often used attributively before nouns.

Examples

• The central bank is concerned about inflationary pressures in the economy.
• Government spending on that scale could have an inflationary effect.
• The report highlighted several inflationary risks for the coming year.
• During the 1970s, many countries experienced a period of high inflationary growth.

Advanced Usage

• "inflationary spiral": A situation where rising prices lead to higher wages, which in turn lead to further price increases, creating a self-perpetuating cycle.
  • The economy entered a dangerous inflationary spiral that was difficult to control.
• "inflationary gap": In economics, the amount by which the aggregate demand in an economy exceeds the aggregate supply at full employment, leading to upward pressure on prices.
  • Analysts warned that the booming demand was creating a significant inflationary gap.

Variants and Related Words

• Inflation (n): The general increase in prices and fall in the purchasing value of money.
  • The rate of inflation has slowed this quarter.
• Disinflationary (adj): Tending to reduce the rate of inflation.
  • The new tax policy is expected to have a disinflationary impact.
• Hyperinflationary (adj): Relating to an extremely high and typically accelerating rate of inflation.
  • The country's economy collapsed during the hyperinflationary period.

Synonyms

• Expansionary (in a monetary/fiscal policy context, though this can be neutral or positive, while "inflationary" often carries a negative connotation of excess).
• Price-raising.

Antonyms

• Deflationary: Tending to cause a general reduction in the level of prices.
  • The sharp drop in consumer spending had a deflationary effect on the economy.
• Disinflationary.

Adjective

1. associated with or tending to cause increases in inflation
   • inflationary prices