EconomicAffairs

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
New: Gift this subscriber-only story to your friends and family

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.

Already a subscriber? 

Dive deeper at $0.99/month

Want more exclusives, sharp insights into what's happening at home and abroad? Subscribe to stay informed.

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • 2-week e-paper archive so you never miss out on any topic that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.