The situation in an economy which is growing slowly along with rapid inflation (rising price level) is called

Stagflation is a unique economic phenomenon characterized by the simultaneous occurrence of stagnant economic growth, high unemployment, and rising inflation [1]. The term is a portmanteau of 'stagnation' and 'inflation' [3]. Typically, economic theory suggests that inflation and unemployment have an inverse relationship; however, during stagflation, the economy experiences slow growth or a decline in GDP while the general price level continues to rise rapidly [1]. This condition is particularly difficult for policymakers to manage because measures intended to lower inflation (like raising interest rates) can worsen unemployment, while measures to stimulate growth can further fuel inflation [1]. A classic historical example occurred in the 1970s when a sharp increase in global oil prices led to cost-push inflation and slowed economic activity across many developed nations [1].

Sources

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