Ukraine war ‘will mean high food and energy prices for three years’
by Larry Elliott Economics editor from on (#5YJNN)
World Bank says biggest commodity shock since 1970s raises spectre of stagflation
The war in Ukraine will result in expensive food and energy for the next three years, the World Bank has warned, intensifying fears that the global economy is heading for a rerun of the weak growth and high inflation of the 1970s.
In a gloomy analysis, the Washington-based development organisation said there was a risk that persistently high commodity costs lasting until the end of 2024 would lead to stagflation - sluggish activity combined with strong cost of living pressures.
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