King: UK to enter period of stagflation

Last seen in the 1970s, stagflation refers to the combination of stagnating growth and rising inflation, presenting policymakers with particular headaches. Stressing that the problems in the financial sector were not yet over, he said: "We are passing through the most prolonged period of financial turmoil that most of us can remember." King's reference to the risk of stagflation was in tune with some of the latest data from the ONS. Annual factory gate inflation - often a precursor to retail price inflation - rose to 8.9pc in March, the highest level recorded since comparable data w...