Is there stagflation in the global economy?

Below is an interesting graphic from the FT which shows GDP and Inflation over the last couple of years in New Zealand – you can select other countries as well and it is good to compare different parts of the world. Note that NZ’s inflation and GDP is lower than the global average. You would normally experience stagflation when the stagnant growth is accompanied by high levels of unemployment – NZ has 3.3% unemployment. However the labour markets globally are very tight with just today British Airways cancelling 10,000 flights due to labour shortages.

If you look at Japan you will see very little difference between GDP and Inflation and you could say they may be eventually coming out of a deflationary period.

The site is very good and has various interactive graphs – Global Inflation Tracker