Barry Rtiholz breaks down the latest survey of economists from the Wall Street Journal, and in the process coins a new description of the economy:
In my opinion, true stagflation is far less likely than many feared. What we are enduring is a form of "demi-stagflation" -- anemic growth and robust inflation. Not like the crazy numbers of the 1970s -- we wont see 7% inflation and 1% GDP anytime soon. Just growth a little bit too soft, and inflation a little bit too robust.
All I can say is, if demi-stagflation is a combination of 3.1% growth plus (as it will be after this week's trade stats get factored into a revision) and 2.4% CPI inflation (which is what core measures suggest), I'll take it.