3 ms·

Isnt normal inflation around 3% annually average over decades?

• fsckboy 2y ago
  it's going to vary by country=currency, but 3% is a bit on the high side of what's desireable. the most desirable feature of inflation would be predictability: if inflation in the future is reliably well known, then interest rates and budgets can be calculated and planned, no surprises. but in general a small amount of inflation is a good thing in no small part because it forces prices to adjust across the economy, including prices for labor. this allows wages to increase more in sectors of the economy where demand is higher, while other wages will go down in a relative sense without actually going down which is very problematic because rent, car payments, etc don't go down.
• legitster 2y ago
  2% is the target - 3% is not too bad. For the last few decades, Federal Reserves have actually struggled to get it as high as 2%!