@lovelylovely Well, in Australia at least, inflation is explicitly controlled/set by the government. The reserve bank board changes official rates to try and achieve a target rate of inflation.
They could choose to target zero, instead they deliberately target 2-3%.
In Australia inflation has nothing to do with corporations, only the government.
@ike the Reserve Bank has an explicit inflation target. The use monetary policy to set the official cash rates, which influences commercial lending rates, which indirectly affects the economy and prices, to achieve the inflation they want.
You can read the official government details here: https://www.rba.gov.au/inflation/inflation-target.html
Effectively, if inflation is high, they raise the rate to dampen the economy; and if inflation is too low (e.g. below 2%), they lower the rate to stimulate the economy. I don't think it is very effective, nor like the degree of government , interference in the market, but it is what it is.
The government does not directly dictate prices, but they do manipulate markets so the overall average inflation is 2-3%.
@sgryphon Unbelievable.
it;s corporate greed here in America.