‘Stagflation’ fear as dollar drops to record low at izbrano

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‘Stagflation’ fear as dollar drops to record low

The dollar fell to its lowest ever level against the European single currency last night after weak exports and the slump in America’s housing market dragged the US growth rate to its lowest in four years. Analysts warned that the world’s biggest economy was on course for mild “stagflation” - slow growth coupled with upward pressures on prices - after Washington said gross domestic product rose just 1.3% at an annual rate in the first quarter of 2007.

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