Every year, the average American buys a certain amount of goods and services. Inflation measures how the prices of those goods and services are changing.
The Federal Reserve has a target for inflation. It wants us at that sweet spot, where the economy is purring along, but not going so fast that it's in danger of overheating.
That sweet spot is two percent. And we hit that today. Which is great news. The question is, what does the Fed do now to keep us there?