3 ms·

The inflation rate has not been between 4% and 8% each year;it's been between 1% and 4%. Source: http://www.inflationdata.com/Inflation/Inflation_Rate/Historic

• bokonist 18y ago
  That's the number for price inflation. Price inflation is monetary inflation minus increases in productivity. Price inflation is useful for determining how standard of living has changed. Monetary inflation ( another word for it is money supply growth or dilution) is the right number to use to determine if interest rates are negative. I was using nominal GDP numbers as the number for money supply growth, although some people use M2, M3 or MZM. Each number has its pros and cons.