Price Increases Leading to Stagflation Continues to Haunt U.S. and Canada
Abstract:
The year-over-year all-items inflation rate in Canada in June 2008 jumped to 3.1%, its highest level since September 2005. Meanwhile, in the United States, the “headline” inflation rate shot up to 5.0%, higher than at any time since mid-1991. As the impacts of the U.S. economic slowdown work their way around the world, there will be an easing in some price levels. Nevertheless, the specter of stagflation − high price increases accompanied by low economic growth − continues to lurk in the wings.
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The year-over-year all-items inflation rate in Canada in June 2008 jumped to 3.1%, its highest level since September 2005. Meanwhile, in the United States, the “headline” inflation rate shot up to 5.0%, higher than at any time since mid-1991. As the impacts of the U.S. economic slowdown work their way around the world, there will be an easing in some price levels. Nevertheless, the specter of stagflation − high price increases accompanied by low economic growth − continues to lurk in the wings.