declaring victory against inflation way too soon

[kanzeon_2040]

There are several different inflation statistics that are calculated using different baskets of goods and services. The most broad and comprehensive measure that I'm aware of is the GDP implicit price deflator, which attempts to measure inflation spread across all the goods and services produced in the US weighted by the amount of each item

Comments

[matrixmann]

3% inflation this year is still another year of prices rising 3% on average.

Summarize that over a couple of years, if it happens to stay that high for such an amount of time - "nicely" done... Several percents of prices increasing over a couple of years.
While people still have to get by with the same amount of bucks like before.

[kanzeon_2040]

Over time it definitely adds up, the value of the US Dollar is down 97% since 1913. The idea is to keep inflation low enough so people don't get too upset about it, but even 2% per year means your savings are continually evaporating.