Stagflation is the word used by many analysts to describe an economy blighted by high inflation and high unemployment, and there will be many who will use it should the inflation and unemployment figures track expectations.
Trump could also use the threat of flooding the market with cheap US gas and oil if Vladimir Putin refuses to make concessions, making it more difficult for Russian suppliers to make a profit and worsening Moscow’s finances.
City analysts not only expect a jump in the consumer price index (CPI) measure of inflation, they are also predicting that the unemployment rate will increase from 4.4% to 4.5%.
Predicting how businesses will react to the uncertainty and threat of extra costs from tariffs, and what impact this will have on jobs, inflation and the economic outlook, was becoming more challenging every week, he said.
Donald Trump’s mission to end the Ukraine war could bring a rush of cheap energy on to the world market, cutting prices at a rapid rate.
