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US economy may be edging towards stagflation as growth slows and inflation stays sticky

The US economy may be drifting towards a stagflationary phase, as a combination of slowing growth, persistent inflation and emerging labour market weakness begins to take shape against the backdrop of rising geopolitical tensions in West Asia. Data from the Institute for Supply Management (ISM) showed services sector activity cooling in March even as price pressures surged, reinforcing concerns that the world’s largest economy is entering a more fragile phase. [...]