Yellen says high food and energy prices have ‘stagflationary’ effects

US Treasury Secretary Janet Yellen said that Russia’s invasion of Ukraine raises energy and food prices, increasing the risk of stagflation in the global economy.

Stagflation is the term denoting prolonged periods of high inflation and stagnant economic growth.

“The global economic outlook is challenging and uncertain,” Yellen said. “Higher food and energy prices have stagflationary effects, which means suppressing production and spending worldwide and increasing inflation,” Yellen said.