US Stagflation Fears Surface as Data Hint at Softer Growth Ahead

A string of recent US data showing resurgent inflation and slowing activity is stoking fears the world’s biggest economy could be heading toward a period of stagflation.

Consumer spending fell by the most in nearly four years in January after a robust holiday season. Americans are growing more pessimistic about the economic outlook, and companies are warning of higher prices in the wake of the Trump administration’s aggressive tariff policy.

Economists caution against making too much of one month’s data, especially when skewed by factors like freezing weather. But should the risk of stagflation — or when an economy ...