Just data
/Numbers you should know:
Historically, the average inflation rate is 3%. This is similar in definition to the CPI (consumer price index) or a COLA (cost of living adjustment). All this means is that, on average, things will cost us approximately 3% more every year (doubling in price every 20 years). You might be wondering why you, the 20-something year old, needs to know this. Well, for starters, you should expect, on average, a 3% raise each year.
Other rates like mortgage rates, similar to the prime rate, have a historical average of 7% (although this is trending down and some believe that the new normal is below 5%). This will matter when you buy a home. More on that later.
PS - If you don't already know, "all rates are annual".