On March 10th, the U.S. Bureau of Labor Statistics announced that in February the Consumer Price Index (CPI) rose 0.8% on a seasonally adjusted basis. The CPI is up 7.9% over the last 12 months, not seasonally adjusted.

The Georgia Center for Opportunity’s (GCO) take: “The United States is now in a precarious position where our rampant inflation rate is going to begin to infringe on the economic recovery,” said Erik Randolph, GCO’s director of research. “Stagflation could very well be just around the corner. As gas prices surge and there is no let-up in other categories, Americans will begin having to make cutbacks. The impact on the economy will be significant.”

 “We’re seeing firsthand the problem with accepting high levels of inflation as normal. When an unexpected event comes along, like the Russian aggression against Ukraine, it upends everything. The February inflation rate does not fully cover the most recent fallout from the invasion. We’re anticipating that the March CPI will be far worse, as the economic aftershocks of Russia’s war against Ukraine will be more fully baked in.”