Bubble? I thought I was being conservative in choosing 2% as a number. Yearly inflation in the past averaged over 2%. I'll admit that the past two years has seen record low interest rates, but 2% raises are hardly a recent phenomenon.
Inflation has historically been targeted around 2%, though we've seen period of higher inflation and sometimes very rarely a little bit of deflation (though not recently).
Some inflation is normal and fine. 6% is rough but tolerable, but getting it back to 2% is obviously desirable.
2% is historically low, and is in fact below what the Federal Reserve has been trying mightily to achieve. Inflation has been below target since the 2008 crash, more or less.
There is a massive deflationary force acting on the economy. Anyone bringing up inflation fears, except to dismiss them, is not tracking any known factual reality.
<2%, 0%, and 0% respectively (annualized). You have to recognize that the inflation figures are a national average - of course there are a lot of people experiencing more inflation than that, just like there are a lot experiencing less.
reply