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Stagflation in control of the world economy - US spending and personal income slows while US and Japanese inflation ticks higher
Japan experienced largest rise in inflation as their economy rallies but overall world econmy is stagnating while commodity and wage inflation are rampant.
The US core price inflation increased at the fastest year-over-year rate in more than a decade. But that happened while personal income and spending stagnated.
The stagflation is something that central banks cannot control. They can control the inflation part till the economy further stagnates and falls into recession if not depression. Look for example what the Federal Reserve didi in the last five years. They first provided unprecedented liquidity to create bubbles of all sorts. The liquidity did not help getting the economy out of stagnation. After that when smelled (late anyway!) inflation they raised short term interest rates like never before. the long rates did not go up becuase the market knows that the economy is stagnating. The yeild curve got inverted and the recession has started.
The world unemployment rate is declining while under-employment rate is increaing. That is the sign of stagflation. And stagflation normally precedes deflation driven depression.
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