There are two key dimensions of inflation risk, and both suggest that the recent upturn in prices may be on the cusp of becoming entrenched. Formal inflation gauges continue to exhibit an upward bias this year, but that is only part of the concern. Inflation sentiment is also beginning to rise. If both sides of this inflation coin continue to heat up, the Federal Reserve’s task of bringing inflation under control will become more difficult and may require a more aggressive policy stance for longer than currently anticipated.