While we are talking about inflation though - Remember that the Fed targets 1.5-2% inflation. Which sounds like a small reasonable number.

But think about that for a second. We know that the rule of 72 shows us the doubling time based on annual percentages. http://en.wikipedia.org/wiki/Rule_of_72

1.5% is a doubleing time of 48 years.
2% is a doubleing time of 36 years.

That means that everything (cpi) will be double the price in 33-48 years. That also means that your savings account / retirement accounts will have half the purchasing power in 33-48 years as it does now.

What you don't see is that this is an EXPONENTIAL function so as time goes on it spirals out of control.