Question: Are inflation rates exceptionally high, leading to a spiral of increasing prices and wages that devalues the currency—a situation commonly known as “hyperinflation”?
→ Answer: No, we are not in such a situation.Inflation is quite low, with annualized core inflation running between 1.4% (core PCE, June 2011) and 3.6% (core CPI, June 2011), depending on the statistic. That is on par with typical rates over the past decade. Broader inflation is actually negative at the moment, currently between -2.0% (PCE) and -2.6% (CPI), due in part to recent energy and food price decreases. Furthermore, the current economic climate makes significant inflation unlikely, since unemployment and wage stagnation put downward pressure on prices.
Therefore, we would suggest:
...
There is no monster under the bed.
But hey, if you'd like to panic anyway, it's a free country. I'm sure they won't mind a few more people misunderstanding economics.
Alternately, check back here occasionally. We'll be sure to update if the answer changes. In the meantime, we're keeping a hyperinflation hall of shame recording all the failed predictions.