OECD warns of global stagflation

According to the OECD, global growth is predicted to be 4.2% this year - down from last year's figure of 4.9% - before rising to 4.6% in 2012, reports the BBC. In its latest economic outlook, the Paris-based think-tank warned of the dangers posed by rising oil and other commodity prices, the European debt crisis and a sharp slowdown in China. Such pressures, combined with the ongoing fallout from the Japanese earthquake, could lead to a situation of stagflation in some countries - the phenomenon of stagnant growth and high inflation. It said one major risk is political instability ...