Obviously, the interest rate for everyone isn’t low. But for countries that have “safe haven” status (US, Japan, Germany, UK, etc), they are. I contend that inflation is actually quite high (especially food inflation), but that is not getting factored into the official inflation rate. I also believe that the Fed buying of USTs (with $$ from thin air) is helping to keep interest rates artificially low. Because the alternative means the System will unravel.
It is pretty hard to have inflation when the housing and construction sectors of the economy are flat on their backs. This is why inflation has remained quite low, lower than I would have expected.
There is no inconsistency in having one or more sector with price increases and have the overall rate stay relatively stable. Inflation is a rise in the General price level. After the initial Obama increase in energy prices they have remained fairly stable as well so are not pushing current inflation up. And unemployment and the bad economy is keeping wage increases down.
“I also believe that the Fed buying of USTs (with $$ from thin air) is helping to keep interest rates artificially low. “
And what of the future day when the Fed is holding 3% bonds when inflation is 10%?