Suddenly, It's Beginning To Look A Lot Like Stagflation

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Photo: Deutsche Bank

Deutsche Bank’s US Economics/Strategy Weekly spells out a picture of the US economy that, um, looks a lot like what you would call stagflation, a word we haven’t heard in a while.What’s going on? The US economy (especially the job-creation part) is sputtering, while prices on various commodities, and food is going up.

That sounds like stagflation to us.

Private sector job creation is clearly sputtering

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

The on the other hand, GDP growth is still doing OK

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

But food inflation is back on the up

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

And signs point to this trend continuing

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

And consumers will soon feel this at home

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

Meat, poultry, and fruit is where the pain is being felt

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

And energy costs are back on the up, which will put more pressure on.

Source: Deutsche Bank US Economics/Strategy Weekly, August 6

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