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February 8, 2018

Why the panic about high inflation?

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON — The past week's stomach-churning stock market losses were ignited by a sudden and contagious fear of surging inflation and higher interest rates. Many investors worried that inflation would send borrowing rates up and sap corporate profits, stock prices and the U.S. economy.

Does that mean higher inflation is on the way? Not necessarily. So far, economists see little evidence that price increases are on the verge of accelerating.


 
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