Economic growth is usually coupled with

Economic growth is typically coupled with inflation because as an economy expands, businesses and consumers increase their spending on goods and services [2]. This rise in aggregate demand often outstrips supply, allowing producers to raise prices, which leads to demand-pull inflation [2]. In economic theory, growth and inflation are often described as being directly proportional in the short run, meaning they tend to go hand in hand [3]. Moderate inflation is generally associated with healthy economic growth, whereas a lack of growth combined with high inflation is a rare and problematic phenomenon known as stagflation [2]. Conversely, deflation (falling prices) is usually linked to economic contractions or recessions rather than growth [4]. Therefore, in a standard economic cycle, the growth stage is characterized by an increasing rate of inflation as demand grows [2].

Sources

1. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 4: Inflation > INFLATION > p. 62
2. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 4: Inflation > CHAPTER SUMMARY > p. 76
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 4: Inflation > Stagflation > p. 74
4. [4] https://www.investopedia.com/terms/s/stagflation.asp