Rising oil prices trigger market fears of stagflation
The Financial Times notes that rising oil prices are increasing stagflation risks and complicating central banks’ policy decisions.
Investors concerned about the fallout from the war in the Gulf were initially focused on the inflationary pressure of higher oil prices, triggering a global bond market rout that deepened over the past week. But a new worry has taken a more serious grip: stagflation, the dreaded mixture of high inflation and stagnant growth. “Markets are beginning to price a... ...
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