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Inflation Rates by Year

In this particular write-up, we will focus on the inflation rates in the United States over the last 100 years. If you are of the opinion that topics like inflation are out-of-bounds for a layman, it will help you change your mindset.
Abhijit Naik
Did You Know?
Inflation dents your buying power! When it occurs, you have to pay more for the same standard of life.
While economics is an intricate subject, difficult for the layman to grasp, it does play a crucial role in our life. We may have no idea of various terms that appear in the financial dailies, but they do affect us directly or indirectly, every once in a while. One such term which makes it to the headlines almost every other day is inflation―a rise in price levels which results in various effects on our financial condition.
Inflation rate is a measure of inflation prevailing in the economy, calculated over a stipulated period―mostly a year. It is defined as the rate of change of prices as indicated by the consumer price index (CPI). Basically, there are two methods by which you can calculate the rate of inflation: first, by using a base period, and second, by using 'chained' measurements. In an economy, inflation rate monitoring is quite important as it acts as a tool for weighing the value of currency.
Inflation in the United States
Given below is a table of annual inflation rates for the United States for the period between 1914 and 2013.
Year Annual Inflation (%)
2013 1.47
2012 2.07
2011 3.16
2010 1.64
2009 − 0.34
2008 3.85
2007 2.85
2006 3.24
2005 3.39
2004 2.68
2003 2.27
2002 1.59
2001 2.83
2000 3.38
1999 2.19
1998 1.55
1997 2.34
1996 2.93
1995 2.81
1994 2.61
1993 2.96
1992 3.03
1991 4.25
1990 5.39
1989 4.83
1988 4.08
1987 3.66
1986 1.91
1985 3.55
1984 4.3
1983 3.22
1982 6.16
1981 10.35
1980 13.58
1979 11.22
1978 7.62
1977 6.5
1976 5.75
1975 9.2
1974 11.03
1973 6.16
1972 3.27
1971 4.3
1970 5.84
1969 5.46
1968 4.27
1967 2.78
1966 3.01
1965 1.59
1964 1.28
Year Annual Inflation (%)
1963 1.24
1962 1.2
1961 1.07
1960 1.46
1959 1.01
1958 2.73
1957 3.34
1956 1.52
1955 − 0.28
1954 0.32
1953 0.82
1952 2.29
1951 7.88
1950 1.09
1949 − 0.95
1948 7.74
1947 14.65
1946 8.43
1945 2.27
1944 1.64
1943 6
1942 10.97
1941 5.11
1940 0.73
1939 − 1.3
1938 − 2.01
1937 3.73
1936 1.04
1935 2.56
1934 3.51
1933 − 5.09
1932 − 10.3
1931 − 8.94
1930 − 2.66
1929 0
1928 − 1.15
1927 − 1.92
1926 0.94
1925 2.44
1924 0.45
1923 1.8
1922 − 6.1
1921 − 10.85
1920 15.9
1919 15.31
1918 17.26
1917 17.8
1916 7.64
1915 0.92
1914 1.35
Inflation Basics
In economics, inflation is defined as an increase in the price levels of goods and services in an economy over a stipulated period. This increase, in turn, diminishes the purchasing power of currency, owing to which each dollar buys lesser goods and services. There exist different types of inflation; each with a different trigger factor of its own. High inflation, also referred to as hyperinflation, can be attributed to excessive growth in money supply, while low or moderate inflation occurs as a result of the fluctuating demand for goods and services, or fluctuations in available supplies. Among the various negative effects of inflation, the most prominent one is the fact that it decreases the real value of money. Any uncertainty about the future of inflation can trigger chaos in the economy, thus discouraging people to invest or save.
It is virtually impossible to point out a single cause of inflation, as this phenomenon is triggered by series of events in the economy. Directly or indirectly, inflation affects the economy, and we being a part of the economy, have to be well-versed with it.