The following graph shows how your living expenses could increase and your buying power could decrease with inflation (average inflation rate of 3.4 %, given your income remains the same). (debtsettlement.com)
Keep in mind that these are all long - term average inflation rates. (hussman.net)
By historical standards, 2 percent is a small pay hike on a nominal basis — although, as noted, it is still ahead of the current and recent average inflation rate. (empirecenter.org)