The general consensus among economists is that a low, stable inflation rate is the best option for an economy.
In most developed countries, the target inflation rate is around 2%.
This rate is considered low enough to avoid the negative consequences of deflation, which is when prices are decreasing instead of increase.
However, it is also high enough to encourage investment and economic growth.
This is because a moderate level of inflation makes it more attractive for people to spend their money now, rather than saving it for later, which helps stimulate economic activity.
Another factor that influences what the ideal inflation rate should be is the rate of productivity growth.
If productivity is increasing rapidly, then it may be possible to have a higher inflation rate without experiencing negative consequences.
This is because higher productivity means that the economy can produce more goods and services at a lower cost, which can offset the effects of inflation on prices.