Stagflation and why it matters

Analysts fear return to ‘toxic cocktail‘ of rising prices and sluggish economic growth

A £5 note
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There are fears that a period of “stagflation” – the combination of price inflation and GDP stagnation – could be on the cards for the UK as business confidence collapses.

The Guardian said that supply bottlenecks, rising energy prices, fuel shortages and looming tax increases have joined forces to add to fears that Britain is “on course for a dose of 1970s-style stagflation”.

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