Buffett Drops the "S" Word

US suffering from stagflation: Warren Buffett

BILLIONAIRE investor Warren Buffett said today the United States was experiencing "exploding" inflation amid a slowing economy.

The chairman and chief executive of Berkshire Hathaway said the world’s biggest economy was in the middle of a period of stagflation and it might get worse.

"I think we are in the middle of it," he told Bloomberg TV, adding he's uncertain when that will end, "maybe not even next year."

Update:

Buffett Says He's Concerned About U.S. `Stagflation' (Update4)

``We're right in the middle of it right now,'' said Buffett, chairman of Omaha, Nebraska-based Berkshire Hathaway Inc., in an interview on Bloomberg Television today. ``I think the `flation' part will heat up and I think the `stag' part will get worse.''