Here’s what causes stagflation and why the US may be at risk for it | JUST THE FAQS

The U.S. may be at risk for stagflation – a combination of slow growth and inflation. Here's what happened the last time the country experienced it.

RELATED: Rising inflation impacts the stock market and more. Here’s how.

Think things can't get worse? Now the World Bank has downgraded its forecast for the global economy, citing factors including stagflation – a combination of slow growth and inflation.

The organization on Tuesday predicted that the world’s economy would expand 2.9% this year, down from its forecast of 4.1% in January. And the World Bank’s predictions for 2023 and 2024 aren’t drastically higher, with an estimated 3% growth for both years.

The World Bank is worried about the impact of Russia’s ongoing invasion of Ukraine, possible food shortages and potential “stagflation.” The war in Ukraine continues to disrupt global trade – including in energy sectors – and commodity prices have spiked and hit countries around the world.

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#Stagflation #Inflation #Economy

3 comments

  1. The corporate media, which told you:
    -inflation doesn’t exist
    -inflation is transitory
    -inflation is good for you
    -inflation has peaked

    is not telling you what stagflation is, what causes it, and how you should feel about it.

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