Most Americans know inflation is right around the corner with the massive government spending plans of President Obama and the congressional Democrats.

Eighty-five percent (85%) of Americans say they are concerned about the possibility of inflation in the current economy, with 55% Very Concerned, according to a new Rasmussen Reports national telephone survey.

Just 11% say they are not very or not at all concerned about the prospect of rising prices. These numbers are identical to findings last August, despite the high level of government spending President Obama has announced in recent months.

Credit remains tight in the country, and the government plans to print more money. Both are generally considered key factors that lead to inflation. Federal Reserve Chairman Ben Bernanke said in a speech today, however, that he is confident the Fed can prevent inflation from happening.

Eighty-four percent (84%) of Americans say they are paying more for groceries now than they were a year ago, and 66% expect to pay even more 12 months from now.

The Federal Reserve has given no indication that it intends to raise interest rates to combat the possibility of inflation, but 34% of Americans think they will be paying higher interest rates a year from now. Twelve percent (12%) say interest rates will be lower, and 45% say there will be no change.

Forty-three percent (43%) also say there has been no change from a year ago in the interest rates they now pay. Twenty-nine percent (29%) say they pay more now, while 25% say they are paying less.

It is not a matter of IF but WHEN inflation hits. And, if the American economy is hit with a doubble wammy of low economic growth and inflation, then we have Jimmy Carter type stagflation.

Remember what happened the last time, too?

Republican candidate Ronald Reagan replaced one term President Carter.

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