Question

The inflation rate, as measured by CPI, should remain at or below _______% to achieve price stability.

Answer 1

2%

Step-by-step explanation:

The average inflation rate for most countries is 2%. It is considered to be a healthy inflation rate, as inflation (a commonly referred negative issue) is normal in certain limits. It is important for inflation to remain healthy, as a higher inflation rate may imply a future inflation crisis coming.

This rate takes in account the consumer price index, which represents the average value of a consumer basket of goods and services.