Fears of a stagflationary mix of high inflation and lack of growth in the UK.
Spectre of stagflation haunts UK
By David Keohane and Claire Jones
The prospect of stagflation has returned to the UK as investors bet on a sharp jump in inflation to its highest level in almost five years.
Inflation expectations, as measured by the difference between nominal and inflation-linked bond yields, ticked up to near 3.3 per cent on Tuesday, levels not seen since September 2008.
Investor fears that the UK could be simultaneously hit by stagnant growth and high inflation, as experienced in the 1970s, were exacerbated by poor economic data pointing to the probability of another economic contraction in the first quarter of this year…
Keep reading: Spectre of stagflation haunts UK – FT.com.
