Rising inflation and weakening job market raise fears of stagflation

Inflation continues to tick up, and new federal data shows a growing number of people are out of work.

That combination is causing concern about the potential for stagflation.

"Stagflation is when the economy is weakening, weakening labor market, weakening GDP, but also we're seeing rising prices," said Bankrate financial analyst Stephen Kates.

Consumer prices were up 2.9% in August compared to a year ago, rising at their fastest pace since January.

Meanwhile, separate federal data showed 263,000 people submitted jobless claims last week, the most since October of 2021.

Those conditions point to stagflation, but a milder version than what Americans saw a half century ago, says Kates.

"You could call that stagflation, but it is a far cry from the stagflation that is sort of built into