Agflation

Agflation

Agflation, a term coined in the late first decade of the 21st century, describes generalized inflation led by rises in Agricultural commodity prices. In the United States, agricultural prices are not generally factored into core inflation figures. The term describes a situation in which "external" (i.e. Agricultural) price rises drive up core inflation rates. Agflation is not applicable to countries like India where agriculture is the mainstay of the economy.