Economist Damijan warns about stagflation

Portorož – Economist Jože Damijan praised the government’s decision to regulate energy prices but subsidies for food producers will also have to be considered and investment kick-started. He also said at a financial conference in Portorož on Tuesday that inflation had become a permanent feature and warned about the threat of stagflation. Damijan said that supply shocks resulting from bottlenecks in supply chains and rising energy prices could bring about stagflation. This situation could further translate into wage growth, which could lead into an inflationary spiral, he said at the…

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