Growth-destroying inflation starts at low single digits, high single digits or (at most) slightly above the ten per cent mark, depending on the methodology used. A little inflation may be good, for example making it easier to lower real prices and wages in industries experiencing more competition without having to lower nominal prices and wages.
However, it must be pointed out that low inflation should not solely be pursued because it is conducive to sustainable economic growth. It should also be pursued because equity, fairness and development in the broadest sense would be sacrificed if inflation were left to spiral upward. 4. What is currently happening to inflation, growth and employment?