'The 1950s experienced a(n) inflationary cycle leading to spiraling prices due to high demand.
Broadly speaking, the cycle begins with surplus funds fueling demand-driven price increases for both businesses and consumers. These higher costs impact budgets that require negative adjustments. When costs exceed "temporary", more income is needed and measures are taken for business.
A deflationary spiral is a downward price response to an economic crisis, resulting in lower output, wages, demand and even prices. Inflation occurs when the general price level rises, whereas deflation occurs when the general price level falls.
Inflation is often used to describe the impact of rising oil and food prices on the economy. For example, if the price of oil rises from $75 to $100 a barrel, input prices for businesses will rise, and transportation costs for everyone will also rise. This could cause many other prices to rise accordingly.
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