What does inflationary mean?
Inflationary is an adjective describing a situation that causes, accompanies, or is characterized by inflation, especially a sustained rise in the general price level. It is commonly paired with words such as pressure, spiral, trend, and environment. For example, a central bank may raise interest rates to reduce inflationary pressure when borrowing and spending are driving prices upward. The adjective is distinct from the noun inflation: inflation names the economic process, while inflationary identifies the forces or conditions associated with it. In everyday usage, inflationary often carries a mildly concerned or cautionary tone, although it remains a standard term in economics, finance, and government reporting. It can also be applied more broadly to any sustained pattern of increasing prices, including those associated with housing, energy, or wages.
adjectiveCharacterized by, tending to cause, or relating to inflation, especially a sustained increase in the general price level.
- Causing or tending to cause inflation.
- Characterized by rising prices or an expansion in the money supply.
- Relating to economic inflation.
"The central bank raised interest rates to reduce inflationary pressure."
"Renewed energy costs created inflationary pressure throughout the economy."
"The report warns that the overheated housing market may remain inflationary for several years."
Inflation originally meant the physical act of blowing or swelling up; its economic meaning is a comparatively recent extension of that older sense.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does inflationary come from?
The word was formed within the English word family based on inflation, which comes from Latin inflare, meaning “to blow into” or “inflate.” The earlier English sense of inflation referred to physical swelling or the introduction of air, especially into a balloon. The economic sense developed in the nineteenth century as inflation came to mean an increase in the general price level. Inflated and inflate belong to the same Latin-derived family and share the underlying idea of swelling or expansion.
How inflationary is actually used
The term is most often used in economic and monetary contexts. It is generally neutral but can imply concern that prices are rising too quickly.
Easily confused with inflationary
Inflation is the general rise in prices, whereas inflationary describes something that causes, accompanies, or is characterized by that rise.