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Bank of America Warns: US Faces Stagflation Amid Rising Inflation

4/11/2026

Summary

Story summary

Bank of America says the US economy is in a stagflationary environment with rising inflation.
Savita Subramanian, Bank of America’s head of US equity strategy, says stagflation raises prices while salaries stagnate.
The Iran conflict pushes Brent above $100 per barrel and gasoline from about $3 to over $4.
Investors should focus on inflation beneficiaries such as energy and industrials, noting stagflation has occurred only twice before in the 1970s.

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Story summary

Bank of America says the US economy is in a stagflationary environment with rising inflation.
Savita Subramanian, Bank of America’s head of US equity strategy, says stagflation raises prices while salaries stagnate.
The Iran conflict pushes Brent above $100 per barrel and gasoline from about $3 to over $4.
Investors should focus on inflation beneficiaries such as energy and industrials, noting stagflation has occurred only twice before in the 1970s.