The rate of inflation is how modern central banks are graded on their performance. In countries like the UK or New Zealand, it is the primary benchmark and the main metric that is targeted. The story is a bit different in the US where the Fed is mandated to watch over prices AND output + employment.

Although its not the same as economic output - having stable prices is important to support growth or a recovery. Deflation prolongs a depression - this was the major motivator for quantitative easing in the last financial crash.

I should correct myself - I should have said "low + positive + stable" inflation and not just "low inflation"