Washington| Surprisingly high consumer price readings in the US and a softening economic outlook have given rise to debate about stagflation and a return to 1973, when Middle Eastern oil exporters embargoed shipments to the West, sending energy costs and inflation soaring.

Like then, economists remain divided about whether this year’s inflationary breakout is driven by post-pandemic supply-side shocks that should iron themselves out once global output and the supply chains it relies on return to equilibrium.