Historical Inflation Rate
Historical Inflation Rate is the record of inflation rate through the years. This record of inflation rate is maintained by the Bureau of Labor Statistics which calculates the inflation rate by measuring it against the Consumer Price Index.
The inflation rate is the percentage which expresses the change in the price of a basket of goods and services in an economy. The international value of a currency is dependent on the inflation rate. If the inflation rate is high then the value of the money declines and vice versa. The historical rate of inflation is also the record of the astronomical rates reached by different countries at different points of time.
US Records Of Inflation Rate
The available records show the historical rate of inflation right from 1914 to the present times. The inflation rate of USA during 1982 was 95% and it was awarded 195 points from the CPI. The 195 points indicate the percentage of inflation a given economy experiences during a given period of time. The CPI rate almost leaped to an astronomical height during 1920s. It took a long time for the CPI to climb up the ladders. The CPI has a track record of long years to be doubled. The time periods in which it doubled are:
- The period between 1920 and 1971
- Again the period between 1983 and 2006 noted a growth in the CPI
The CPI hit the rock bottom during the period of 1916-1922. Inflation rates during this time period were 18 and 10.5% respectively in 1918 and 1921. The rates have been more or less consistent after a new chairman ascended on the chair. For the past twenty years or so the inflation rate has been quite under control varying between 5.4% and 1.6%.
Inflation Rates After War
It has been observed that the post war periods normally experience high rate of inflation since there is a crisis in the production sector and the demand increases to a greater level. All the World Wars and the Vietnam War cast a negative effect on the economies of various countries indulged in war. It has been recorded that right after the war period the inflation rates become sky high. After World War I the inflation rate was as high as 16%, after World War II the rate was 10.3% and after Vietnam War the rate was 7.1% respectively.