"Unless you start seeing them pushing prices up, its hard to see inflation going back to 1980's levels."

Most African nations saw inflation of approximately 10% per year.

But once those shops are empty, then you'll see inflation back with a vengeance.

The Fed now indicates publicly the range within which it would like to see future inflation.

"But if we see inflation, the investing public will respond."

As these factors work their way out of the equation over the year, we can expect to see inflation coming down.

"We see inflation coming down even though the growth rate has clearly picked up" to more than 3 percent.

"I see inflation as remaining well contained going forward," he said.

This means bond investors see higher inflation on the horizon.

Even with the February report, analysts see inflation rising only a little more than the 3 percent of last year.