The biggest problem facing the rich world’s central banks today is that inflation is too low. By all indications, it appears inflation is the least of our problems despite massive Federal Reserve money-printing and unprecedented government spending. As I write this, Newmont Corp. (NEM), the biggest gold miner by market cap, yields 1.6%. Prof. Hanke's HHIZ measure indicated that the inflation peaked at an annual rate of 89.7 sextillion percent (89,700,000,000,000,000,000,000%, or 8.97 × 10 22 %) in mid-November 2008. Inflation. The consumer price index fell 0.8% in April, according to the latest Labor Department data. It was the biggest plunge in consumer prices since December 2008. year-over-year, the CPI is up 0.3. Or, the decrease in the buying power of the dollar. It should be understood that 2% is an arbitrary figure. Top policymakers don't have many strong explanations. 1.5% inflation or 2.5% inflation would just be as arbitrary. Federal Reserve Chair Janet Yellen recently called the lack of inflation a "mystery." Inflation measures the increase in the price of goods and services. The inflation rate is an important economic indicator because it tells you how fast prices are changing. Inflation is associated with a lot of problems that are major affecting the consumers, on problem that is associated with the loss of the value of the money. CPI stands for consumer price index; it is an economic measurement that tracks inflation in an aggregate economy at the consumer level.Though frequently used and commonly reported, there are some problems with CPI. Two problems here (besides the meager yield): Newmont’s dividend depends heavily on gold prices. The biggest problem facing Venezuelans in their day-to-day lives is hyperinflation. The biggest problems with CPI include substitution bias, new items added to the basket of goods, and quality changes in goods. 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