The Secretary General of the Organisation for Economic Co-operation and Development, Mathias Cormann, has played down the risk of stagflation due to the Iran crisis, Reuters reports.

Asked whether the OECD feared a repetition of the stagflation seen in the 1970s, Cormann said: “We don’t see as a base-case scenario a risk of stagflation.”

“What we experience today is different… Today’s inflation is being driven primarily by a specific supply shock in energy prices rather than broad-based demand,” he told a panel discussion at an economic forum in Delphi, Greece.

The global economy has some genuine sources of strength, he added.

Stagflation is a combination of stagnant economic growth, high inflation and unemployment.