It is an economic principle that very low unemployment leads to competition for wworkers via increased wages, which help drive inflation up (as the increased la

It is an economic principle that very low unemployment leads to competition for wworkers via increased wages, which help drive inflation up (as the increased labor costs lead to a more expensive output). The inverse is also true. So, central banks prefer inflation to not be zero, but not be high either (often, central banks have inflation as one of their target numbers that drives their policy).