NEW YORK (CNN/Money) - Inflation is on everyone's radar screen as Wall Street waits to see how soon the Federal Reserve raises interest rates.

So is today's increase a temporary blip or a sonar reading from the depths of the economy signaling spiraling inflation ahead?

So far the reaction seems to be that energy prices were the main culprit pushing the headline number up by a bigger-than-expected 0.5 percent. Look beneath, take out food and energy prices and the gain of 0.2 percent is still deemed tolerable by many economists.

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Not by all.

The Fed's insistence on keeping rates at 40-year lows for so long, the falling dollar, rising commodity prices are all seen as big red warning signals of inflation by a vocal minority.

The other side says, chill out. The economy is perking up and that's good. Let companies have a little pricing power. The labor market is still weak and that will keep inflation in check.

I know this kind of commentary drives some people crazy: "How can you say inflation is low when my home heating bill is through the roof and I am paying more for my health benefits every year??!!!"

This is all true. But, in the eyes of the Federal Reserve, and that's what counts on the interest rate fronts, there are enough slowly rising prices -- some even falling -- to not yet worry about inflation, or at least not to worry about an inflationary spiral.

I understand why people go bonkers when they read or hear someone saying, inflation is tame, because many households are hit by rising prices for basics of life. After all, some do call inflation the cruelest tax of all.

If, however, those rising prices cut into your spending on other stuff, and companies don't see demand for their products ramping up sharply and they don't start hiring -- a lot of ifs - then the Fed is probably going to stay on hold and not raise rates.

And that's the potential good news: The Fed is not itchin' to raise rates and snuff out the growth that a lot of Americans need to see in order to get jobs if not healthy raises again.  

Kathleen Hays anchors CNN Money Morning and The FlipSide, airing Monday to Friday on CNNfn. As part of CNN's Business News team, she is also a regular contributor to Lou Dobbs Tonight.