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RBC Warns of Stagflation Risks in U.S. by 2026

12/7/2025

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RBC Warns Stagflation

Royal Bank of Canada (RBC) warns that the U.S. could face stagflation in 2026, with core inflation above 3% due to housing costs and sticky wage growth.
Home prices rose 1.3% year over year, adding to inflationary pressure.
Core services inflation remains stubborn, not declining in forty years due to wage growth.
Tariffs are expected to lift goods prices, with full impact by mid-2026.

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Economists Predict Uncertainty

Experts predict uncertainty for the U.S. economy in 2026, with mixed growth forecasts.
The Royal Bank of Canada expects a 2.2% increase in Real GDP, while the Organization for Economic Cooperation and Development warns of a 1.7% slowdown due to tariffs and reduced immigration.
Bank of America remains confident in investment growth, but OpenAI's CEO Sam Altman cautions against an AI bubble.
Consumer spending stays resilient, but the Supreme Court's decision on tariffs could significantly affect the economic outlook.

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RBC Warns Stagflation

Royal Bank of Canada (RBC) warns that the U.S. could face stagflation in 2026, with core inflation above 3% due to housing costs and sticky wage growth.
Home prices rose 1.3% year over year, adding to inflationary pressure.
Core services inflation remains stubborn, not declining in forty years due to wage growth.
Tariffs are expected to lift goods prices, with full impact by mid-2026.

1 / 2