What’s stagflation and why does the rising risk of it matter?

High inflation is bad enough on its own — but what about when it comes with high unemployment and stagnant economic growth? This pairing is what is known as stagflation, a rare economic phenomenon. And lately, concerns are cropping up that the U.S. economy could be showing signs of it.

“Persistent inflation above the Federal Reserve’s target and the job market slowdown had already prompted worries,” said CNBC. Then “surging oil prices due to the Iran war” entered the equation, bringing...