2% yearly inflation (seigneuriage)  is considered normal. Inflation is a tax (It lowers your purchasing power and devalues your savings).
Inflation is created by a central bank printing a little bit more money than it should.
This excessive money should be used for public streets, schools, healthcare but apparently it is not.
So where is this money going?
Hint: Banks are getting larger, The gap between the wealthy and the poor is getting larger.