We're experiencing stagflation because of such high oil prices. For every 10% of oil price increase it is estimated that GDP growth is slowed by .5%. We've had quite a bit more than 10% of oil price increase this year which has slowed our economy down incredibly and is helping push us into recession. The bad thing about stagflation is that it leaves price levels higher while shrinking the overall real GDP of the economy, leaving more people without jobs and prices higher. Lowering interest rates also increases price level. Therefore our inflation this year is gonna be huge.