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Surging energy prices and stagflation
Energy prices are under pressure and many observers fear the return of stagflation, a situation where inflation is high and economic growth stagnates. The price of Brent crude and the US WTI have both doubled in a year. The price of natural gas in the US market has also doubled since October 2020. How have these rapid rises come about and are fears of stagflation warranted or exaggerated?