Stagflation

Key events:       New Year's Day 2022 has become the most volatile year in a decade: the world economy is going through tough times, central banks are struggling with high inflation, and the stock market has been under pressure from a bearish trend since the beginning of the year. Will the situation change in 2023 and what should investors expect?

Russia's invasion of Ukraine has pushed oil prices to their highest level since 2008 and raised fears of "stagflation," writes Business Insider. We are now seeing a surge in the prices of oil, gas, wheat, and base metals, dashing hopes for a strong (and soon) global economic recovery. Oil hit its highest level since July 2008, raising investor fears of "stagflation," a dangerous combination of high inflation and a stagnant economy - low or even negative growth.