It Stagflation News Today : Breaking News, Live Updates & Top Stories | Vimarsana

At its fastest rate for a decade, with inflation at 5.1% last month according to figures from the office for national statistics. rising transport and energy costs have driven the increase, which is substantially higher than analysts had been expecting and more than double the bank of england's inflation target of 2%. tomorrow, the bank has to decide whether or not to raise interest rates in response to the new inflation figures. here's our economics correspondent, andy verity. when chrissyjones from frome was younger, in the 1970s, they used to call it stagflation. as the economy slows almost...

Kaltbaum. how should with worry about the sell-off? the dow down 950 points at one point. >> the big worry is the combination of a slowing economy and pricing going up. they call it stagflation. if we get that in a serious fashion, markets will take a dive. hurts profits, hurts consumer. there's no worst scenario to come and you have a market where nothing has gone wrong. we continue to go higher off of the fed and valuations are in the trees so you have one heck of a combination here right now. i'm hoping cooler heads prevail. the good news is that the last half hour saw a good bump of 300 do...

Car. they are going to suvs and trucks. the other thing i think when we talk about gasoline prices and its impact on consumer news, there are always people that can be hurt with higher gasoline prices. but if you put that into the context that the economy is in the best shape it's been in in generation, and it's a bad thing the prices go up for that reason but it's a good thing because guess what, we would love to drive more. it's america. >> in the 70s, the prices were running out of control and going crazy, that was not a very good economic backdrop so it didn't help that we had a slow econo...

The s word is stag tphraeugs. it'stagflation.it is high priced unemployment. we are headed towards a period where prices are rising, people can't find jobs. we have to bring prices down and get jobs back. the person that should really be concerned about that is barack obama. if we have a combination of 9% unemployment and 6 or 7% rise in prices next year i don't see how he gets reelected. jenna: so much can change. the value louisiana teuft of this has been so hard to fine. >> gas prices are going to fall maybe i'll have that next week. jenna: that's what we'll look for next week. steve moore ...