When people's incomes increase more
slowly than the inflation rate, their purchasing power declines.
Not exact matches
-- Said the Fed needs to keep
slowly raising
rates, rather
than waiting until
inflation hits its 2 percent target, to avoid a «boom - bust» economy whereby it might eventually have to tighten so aggressively as to tip the economy into recession.
Were prices
slowly rising rather
than falling, companies would be able to raise wages and salaries by roughly the same proportion as the
inflation rate without paying significantly more in
inflation - adjusted wages.