U.S. Inflation Remains Low, and Thats a Problem.

[elleng]

'The United States has a problem: not enough inflation.

That notion is a bit of a head-scratcher. Most people don’t like inflation. They would prefer that a dollar tomorrow be worth the same as a dollar today.

But a recent drop in inflation may be a sign of fresh economic weakness and is perplexing to Federal Reserve officials who are now wrapping up the central bank’s stimulus campaign.

The Federal Reserve thinks modest inflation has important economic benefits, and it has aimed since 2012 to keep prices rising at an annual pace of 2 percent. The problem is that the Fed is on track to fail for the sixth straight year. Inflation has been stubbornly sluggish.'>>>

https://www.nytimes.com/2017/07/24/us/politics/us-inflation-remains-low-and-thats-a-problem.html?

[GeorgeGist]

1. Actually that is a flaw ..

in the capitalist model.

[Yonnie3]

2. I was just looking at the CPI figure on the BLS website this morning

and was thinking few or no rate increases are coming soon. I look at the categories that are important to me as a mostly retired person and note they my personal inflation is higher than their calculation. They were doing an elderly CPI experimentally, but quit in 2012.

https://www.bls.gov/news.release/cpi.toc.htm