If the ideal inflation rate is around 2%, won’t money eventually become worthless?

Question

If the ideal inflation rate is around 2%, won’t money eventually become worthless?

In: Economics

Answer 1

> ELI5: If the ideal inflation rate is around 2%, won’t money eventually become worthless?

There is no ideal inflation rate. Inflation can be at 10% but if there are 10% more goods and services, and the wages increase accordingly, it evens out. More money supply with more goods and services. In the case of the current administration, the inflation was too high.

https://www.usinflationcalculator.com/inflation/current-inflation-rates/