The answer to this – very good – question is: You should care because below-target inflation signals a significant problem in our economy. Let me explain what I mean. At a basic level, you should think of prices as a signal about how our economy is using its available resources.
In 2012, I had an experience that brought home this intuition in a very clear way. I visited Williston, on the western edge of North Dakota. As it is today, when I visited Williston, it was in the heart of a major oil boom.