Inflation Rates

[*ochocincos*]

While inflation rates are at their highest they've ever been, it's important to understand why (and why not).

Take a look at the numbers - https://www.usinflationcalculator.com/inflation/historical-inflation-rates/
A lot of people assume (incorrectly) that inflation happens more when democrats are in charge, and lower when republicans are.
But what actually affects it more is a healthy and growing economy.

2001-2008, you see many months where inflation was 3-5%. Those were George W. Bush years, and inflation was higher about every year compared to Obama's years.

But back in 2009, inflation was relatively 0 or even negative in some cases.
This can be attributed to the Recession striking right at the end of 2018 and Winter 2009.

As the economy picked up 2010-2012, inflation started to rise again.

2013-2016, inflation actually wasn't as high compared to 2010-2012.
In fact, 2015 was basically no inflation.

Then from 2017 up until the pandemic hit, you see inflation jumped back up to the 2.0-2.9 range pretty frequently.

Inflation then hit a wall starting March 2020 and stayed low until about a year later (April 2021) when the country started opening up more, COVID cases going down, and many people getting vaccinated. I only mention the last part because it did attribute to lower cases and comfortability to go out and do things.

Ever since things started trying to get back to normal starting 2Q of 2021, inflation has rapidly jumped.

If there's another Recession, inflation will drop again.