One way to measure inflation is the difference between nominal and real GDP. Using that metric, inflation has been rising at an alarming pace, accounting for more and more of nominal GDP. Three quarters of the apparent gains from July through September were just inflation, not real growth, which is why the real GDP figure came in at only 2.0%. If you’re a business owner and you’re seeing higher sales, it’s all getting eaten up in higher input prices. If you’re an employee and you got a raise, it’s all spent on a higher cost of living.