When discussing U.S. history, the state has had one of the highest and the lowest inflation rates. The inflation rates tell you about the existing condition of the economy. They can fluctuate due to various reasons, such as war, pandemics, and recessions, that can affect the economy overall and lead to a lower purchasing power. This study by Madison Trust concludes that the annual inflation rates from 1914 to 2023 have consistently fluctuated. In the year 1914, the annual inflation rate was 1.35%. In 1917, it was the highest at 17.84%. The lowest inflation rate was recorded in 1921 at -10.64%. In the next decade, 2000, it reached 3.38%. It continued to decrease and fluctuate. Recently, in 2023, it was 3.70%. This was a significant decrease from 2022, which was 8%. The inflation rate that continues to fluctuate in the United States can adversely affect the economy and lower consumers' spending power.
Infographic by: madisontrust
