The recent rise in the consumer price index (CPI) has stoked fears of 1970s-style high inflation and even stagflation, an economy that exhibits both high unemployment and inflation. While it would be irresponsible for policymakers to dismiss the possibility of either occurrence, it would be just as imprudent to overreact to the recent increase in the CPI. Rather than panic, public officials should focus on long-term reforms that will help avoid this type of economic anxiety in the future.