WIKI: Stagflation is an economic situation in which inflation and economic stagnation occur simultaneously and remain unchecked for a period of time.
Economists offer two principal explanations for why stagflation occurs. First, stagflation can result when an economy is slowed by an unfavorable supply shock, such as an increase in the price of oil in an oil importing country.Second, both stagnation and inflation can result from inappropriate macroeconomic policies. For example, central banks can cause inflation by permitting excessive growth of the money supply.
Although large users of electricity like steel manufacturers, mines and smelters can all negotiate rates, smaller businesses will simply have to accept the price increases and hand this on to consumers.