The spectre of stagflation has coalesced very quickly following the talk of inflation that preceded it.
The “shock” caused by the outbreak of war in Ukraine accelerated already hot inflation trends to now spill over into the possibility of stagflation, something not seen in the economy since the oil shock of the 1970s.
Stagflation refers to an economy that is experiencing a simultaneous increase in inflation and stagnation of economic output.
Although the jury is still out on whether we are entering a period of stagflation, the economic outlook presently is grimmer than it was just a month ago.
