Business & Finance
How the ‘double scar’ of past inflation woes and geopolitical shocks amid the Iran war is hitting consumers
Key Points
Research indicates that the combined impact of past inflation issues and current geopolitical shocks, such as the Iran war, is negatively affecting consumers. These "mental scars" are reinforcing fears of stagflation, a situation where rising prices occur alongside slowing economic growth.
Mental "scars" reinforce fears of stagflation, when rising prices coincide with declining growth, research finds.