Fears on stagflation are mounting in the US following latest GDP report

CommSec’s Craig James says concerns about stagflation are rising in the US following the latest gross domestic product report. “US GDP of economic growth was only 1.6 per cent in the first quarter – the expectation had been a lot higher at 2.4 per cent,” Mr James told Sky News Australia. “And the measure of inflation was higher with the deflator at 3.4 per cent compared with 1.8 per cent. “So, it's raising concerns about stagflation which is slow economic growth and rising inflation. “So not a very good combination.” Presented by CommSec.