'Inflation' hasn't changed, one particular measure of it, the CPI has changed. There are other measures, though, that are calculated differently. And the PPI, the GDP deflator, what wage indices I can find, and the Billion Prices Project all say that the current rate of inflation is between 1 and 3%. Which is basically as low as US inflation has gotten in post WWII-history, baring the bout of deflation we had at the start of the financial crisis.
Yes, by selectively looking at one category of good while ignoring other you can create your own special index such that inflation looks like it's high, but that's always true except in a static economy.
As to people worrying too much about inflation, well, I agree in general. But please read the Wikipedia page on inflation to see the reason why politicians might want to care about inflation even if the voters don't.
Yes, by selectively looking at one category of good while ignoring other you can create your own special index such that inflation looks like it's high, but that's always true except in a static economy.
As to people worrying too much about inflation, well, I agree in general. But please read the Wikipedia page on inflation to see the reason why politicians might want to care about inflation even if the voters don't.
http://en.wikipedia.org/wiki/Inflation