Inflation rate can increase and decrease
into different price level from economy from 2017-2018. On 2017, the inflation
was ranged from 2.7% -1.6%, averaging a total of 2% for the year. The rate is
under the target rate followed by the federal reserve and this is the reason
why the federal reserve opted for increasing the rate of interest to adopt a
tight monetary policy. The low inflation rate could stimulate the consumer
spending.

–      
Increase
the cost of transportation 3.8%

–      
Electricity
prices roses faster than the previous year 2.7%

–      
Medical
care rose at a steady 1.6%

Overall, the economy experienced a rise in
consumption spending, reflecting a solid economic environment.