Summary
The inflation rate discussed herein is the percent change in the Consumer Price Index (CPI) in a calendar year.
The CPI is a weighted average price of goods and services in the US, specified by the Bureau of Labor Statistics.
The method used to compute CPI changes over time, leading some to speculate that it is rigged to over or understate inflation for political and other reasons.
While there’s no perfect measure of inflation, the CPI is the most highly used metric.
Inflation is of paramount importance for investors.
“High” investment returns can be completely nullified by inflation.
Argentina
had 211% inflation in 2023—a 200% investment return resulted in a loss of spending power!
Likewise, low investment returns can be very beneficial when inflation is lower or negative.
Inflation impacts investors in other ways.
High inflation often leads to higher interest rates, which typically lowers asset prices and increases bond rates.
Mean inflation (1914 to present): 3.3%
Min / max inflation: -10.8 / +20.4%
Last 25 years mean inflation: 2.6%
Last 10 years mean inflation: 3.0%
Last 5 years mean inflation: 4.2%
Table of historical annual inflation
| Year | Inflation [%] |
|---|
| 2024 | 2.9 |
| 2023 | 3.4 |
| 2022 | 6.5 |
| 2021 | 7.0 |
| 2020 | 1.4 |
| 2019 | 2.3 |
| 2018 | 1.9 |
| 2017 | 2.1 |
| 2016 | 2.1 |
| 2015 | 0.7 |
| 2014 | 0.8 |
| 2013 | 1.5 |
| 2012 | 1.7 |
| 2011 | 3.0 |
| 2010 | 1.5 |
| 2009 | 2.7 |
| 2008 | 0.1 |
| 2007 | 4.1 |
| 2006 | 2.5 |
| 2005 | 3.4 |
| 2004 | 3.3 |
| 2003 | 1.9 |
| 2002 | 2.4 |
| 2001 | 1.6 |
| 2000 | 3.4 |
| 1999 | 2.7 |
| 1998 | 1.6 |
| 1997 | 1.7 |
| 1996 | 3.3 |
| 1995 | 2.5 |
| 1994 | 2.7 |
| 1993 | 2.7 |
| 1992 | 2.9 |
| 1991 | 3.1 |
| 1990 | 6.1 |
| 1989 | 4.6 |
| 1988 | 4.4 |
| 1987 | 4.4 |
| 1986 | 1.1 |
| 1985 | 3.8 |
| 1984 | 3.9 |
| 1983 | 3.8 |
| 1982 | 3.8 |
| 1981 | 8.9 |
| 1980 | 12.5 |
| 1979 | 13.3 |
| 1978 | 9.0 |
| 1977 | 6.7 |
| 1976 | 4.9 |
| 1975 | 6.9 |
| 1974 | 12.3 |
| 1973 | 8.7 |
| 1972 | 3.4 |
| 1971 | 3.3 |
| 1970 | 5.6 |
| 1969 | 6.2 |
| 1968 | 4.7 |
| 1967 | 3.0 |
| 1966 | 3.5 |
| 1965 | 1.9 |
| 1964 | 1.0 |
| 1963 | 1.6 |
| 1962 | 1.3 |
| 1961 | 0.7 |
| 1960 | 1.4 |
| 1959 | 1.7 |
| 1958 | 1.8 |
| 1957 | 2.9 |
| 1956 | 3.0 |
| 1955 | 0.4 |
| 1954 | -0.7 |
| 1953 | 0.7 |
| 1952 | 0.8 |
| 1951 | 6.0 |
| 1950 | 5.9 |
| 1949 | -2.1 |
| 1948 | 3.0 |
| 1947 | 8.8 |
| 1946 | 18.1 |
| 1945 | 2.2 |
| 1944 | 2.3 |
| 1943 | 3.0 |
| 1942 | 9.0 |
| 1941 | 9.9 |
| 1940 | 0.7 |
| 1939 | 0.0 |
| 1938 | -2.8 |
| 1937 | 2.9 |
| 1936 | 1.4 |
| 1935 | 3.0 |
| 1934 | 1.5 |
| 1933 | 0.8 |
| 1932 | -10.3 |
| 1931 | -9.3 |
| 1930 | -6.4 |
| 1929 | 0.6 |
| 1928 | -1.2 |
| 1927 | -2.3 |
| 1926 | -1.1 |
| 1925 | 3.5 |
| 1924 | 0.0 |
| 1923 | 2.4 |
| 1922 | -2.3 |
| 1921 | -10.8 |
| 1920 | 2.6 |
| 1919 | 14.5 |
| 1918 | 20.4 |
| 1917 | 18.1 |
| 1916 | 12.6 |
| 1915 | 2.0 |
| 1914 | 1.0 |
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Click here for other historical returns.
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