Mounting fears of weak growth and lasting inflation have sent global markets into retreat, raising fears of stagflation.
Sterling fell by more than 1% against the dollar, to its lowest point since January, as fuel and gas shortages threatened to derail economic recovery.
Meanwhile, sovereign borrowing costs jumped in big economies and leading stock markets fell, which City economists said reflected the risk of “stagflation” — the dreaded combination of poor growth and rising prices.
