BONN, Germany (AP) — Treasury Secretary Janet Yellen warned Wednesday that Russia’s February invasion of Ukraine has produced a sharp increase in food and energy prices that is contributing to a slowdown in growth and creating greater risk of global stagflation.
“This is an environment that is filled with risk, both with respect to inflation and potential slowdowns,” Yellen said at a press conference ahead of Group of Seven finance ministers meetings this week in Bonn.
“The economic outlook globally is challenging and uncertain,” Yellen said. “And higher food and energy prices are having stagflationary effects, namely depressing output and spending and raising inflation all around the world.”
