Biflation is a state of the economy where inflation and deflation occur simultaneously.She says that greater rates of increase in prices of goods higher up the supply chain indicate inflation is in the pipe.
The price increase of commodities is caused by the increased money flow (via loose monetary policy) chasing them. On the other hand, the growth of economy is tempered with high unemployment and decreasing purchasing power. This has resulted in a greater amount of money directed toward essential items (inflation) and away from non-essential items and things that require credit to buy, such as houses and cars (deflation).
Two commentators wondered if "biflation" is just a neologism for stagflation.