Business Report: How much inflation is the right amount? - Hawaii News Now - KGMB and KHNL

Business Report: How much inflation is the right amount?

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HONOLULU (HawaiiNewsNow) -

Too much inflation is bad, but since the Great Recession we've had super-low inflation. And that can be bad, too. When inflation is low, people and companies delay spending, in case it's cheaper tomorrow. Japan's economy has been sluggish for 20 years because of deflation. The Fed has deliberately kept inflation low, preventing a depression. Well done! But for two years we and other nations have tried to ease rates back up to 2%. The U.S. inflation rate is currently at 1.5% while the E.C. is at 1.3%

E.C. central banker Mario Draghi said over the weekend he's confident inflation will pick up. Fed head Janet Yellin says her best guess is prices will soon pick up.

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