[quote=gzz]I think inflation even at 0% is overstated.
For middle class people, new cell phones, PCs, and car payments are major expenses.
[/quote]
I disagree. All of the items you mention are choices.
We pay childcare and preschool costs that go up at least 2.5% per year. These costs are not a choice, we have to put our kids somewhere while we work. Also, we will have to pay for extended care when they go to school. And college costs rise every year.
My healthcare costs are going up at least 3% per year. This is through work but still is part of reimbursement.
We own a house (thankfully), but our friends just rented a place for $4100/month. That is substantially higher than a few years ago.
