Stagflation – isnt’ that inflation plus recession? We have rising prices and a slowing economy: stagflation. Or am I using the word wrong?
Inflation is at 2.9%, but the Fed paused. Inflation will keep rising, because oil prices are rising. Wages are not, but commodities are rising. A recession is coming up too.
Does it matter if inflation is caused by rising wages or rising oil? Isn’t it inflation either way?
Credit demand is still rising, if we look at last week’s report. People are using credit to make up for flat wages in the face of rising inflation, and to pay for gas.