1. The rate of unemployment at which inflation remains stable; the lowest sustainable unemployment rate without causing accelerating inflation.
Usage: economics; acronym: Non-Accelerating Inflation Rate of Unemployment; technical term used in macroeconomic policy

Examples

• Economists estimate that the nairu for the U.S. economy is around 4 to 5 percent.
• If unemployment falls below the nairu, inflation tends to accelerate.
• Central banks often target policies to keep unemployment near the nairu.
• The nairu concept helps policymakers balance employment and price stability.
• Debate continues about the exact level of the nairu in different economies.