Lower unemployment rate= higher inflation

[FishHooks]

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I'm not sure if inflation has anything to do with a super low unemployment rate unless the economy is growing at a incredible rate.

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It works more in reverse, the low unemployment will cause inflation. If unemployment is really low, employees can now ask for more raises because the company can't fire them because they might not be able to hire someone at the same rate. So wages tend to rise. Also with lower unemployment, more people working = more output, so the economy expands, and using aggregrate functions, the closer real GDP is to natural GDP the higher the inflation rate. However many european banks dont really fully believe in this last statement...but it's europe...cmon lol