Assume the USA has seen the following annual rates of inflation:

• Year 1:5.3%
• Year 2:4.1%
• Year 3:3.0%
• Year 4:3.2%
• Year 5: 3.2%

Target Rate of Inflation is 2.0%

1. Given the pattern over the five years, is this economy facing an inflation problem?
2. Who might benefit given the inflation pattern in the problem?
3. Who might be hurt given the inflation pattern in the problem?