[PeterPrinciple]

Debts are harder to pay off without inflation shrinking their burden.

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It is wage inflation they want to see so they can have tax inflation and more money to spend.

They don’t care about the inflation you and I experience.

[expat_panama]

It is wage inflation they want to see so they can have tax inflation...

Then again it may be the fact that every single time someone receives a wage, someone else is paying it.  That's why I thing wage trends are important.  otoh, the Fed says it doesn't care about wages becuase it only looks at Personal Consumption Expenditures and not personal incomes.  In the month of Nov. energy costs fell, and that brought average prices for consumers back down to zero.

We could always leave out food and energy if we want and say Nov. had a 2.4% annual rate, but I don't know if Yellen wants to do that.

[Mr. K]

Inflation is great if you have existing home and mortgage, you are paying it off with dollars worth less. Incomes go up during inflation, but your mortgage payment stays the same.

I would LOVE to be still paying on my first house- at $350 a month (including taxes)