Is the US Headed for “Stagflation”? (Level 1)

A few months ago, the United States economy looked very strong. Prices were stable, and businesses were growing. Today, things are changing. Experts worry about a problem called stagflation. This word means the economy is not growing, but prices are going up. Why is this happening? First, prices are rising fast. Conflicts in the Middle East make oil very expensive. Ships cannot move safely to deliver oil. When oil costs more, food and goods also cost more. Second, the economy is slowing down. Businesses are not making new jobs. People have less money to spend. The situation is not as bad as the economic crisis in the 1970s. The US uses less oil today. However, high energy prices still hurt the economy. Experts believe there is a higher chance of a recession soon.