Big in the ’70s and ’80s, talk of stagflation has reared its head again. What is it, and are we heading for a new era of it?

The Australian dollar is edging closer to a 70s-handle, dropping to a new four-year low of US82.35¢ on Tuesday on the back of poor business confidence figures and another major bank switching into the rate cut camp.

Local stocks sink, led down by a rout in the energy sector as BHP plunges below $29 and Santos crashes, while the dollar dives again as NAB joins the rate-cut camp.

An increased risk of bushfires is being cited by the electricity industry as it starts its campaign against cuts recommended for power prices in NSW.

The Australian dollar dropped more than half a cent in short order to crash below 82 US cents, while a rally in energy stocks and miners have helped the ASX 200 snap - just - a six-day losing streak.