Why stagflation is more likely than not

The stars are aligned for inflation and recession to come together

Stagflation has moved from being a tail risk to the base case among many fund managers. PHOTO: REUTERS
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Last month, searches for the word "stagflation" hit "peak popularity" on Google trends, far exceeding its level during the global financial crisis in 2008.

A combination of the words "stagnation" and "inflation", it was something the world last experienced during the 1970s. After more than three decades of low inflation, we could be forgiven for thinking the term had gone extinct.

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