EU warns of a "serious stagflation shock" in the event of a prolonged war in the Middle East.
On Monday, the European Commission warned of a "serious stagflation shock" in the event of a prolonged conflict in the Middle East.
"If it drags on, with disruptions in maritime shipping in the Strait of Hormuz and attacks on the energy infrastructure of Gulf states, it could ultimately provoke a serious stagflation shock in the global and European economy," quotes European Commissioner Valdis Dombrovskis from Radio France Internationale.
Stagflation is a state of the economy where inflation rises amid an economic downturn.
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