Average
inflation rate by year from 1914 to 2018
In
1913, the US Congress passed the Federal Reserve Act. It imposed a “managed
economy’ and gave the Federal Reserve Bank the authority to set the discount
interest rate used to lend money to banks and print money, causing inflation.
Congress also passed the Income Tax Act and Inheritance Tax Act in 1913.
The
first years were mild with a 1% income tax and 1% inflation in 1914 and 1915.
In
1916, Inflation moved to 7.9%, 17.4% in 1917, 18% in 1918, 14.6% in 1919 and
15.6% in 1920. Inflation occurs when too many dollars chase too few goods
according to the law of supply and demand. Government became the biggest
consumer during periods of high inflation. Periods of deflation in 1921, 1927,
1938, 1949, 1955 and 2009 indicate recessions and declining asset prices and
GDP.
Year-Inflation
Rate %
1914
1.0
1915
1.0
1916
7.9
1917
17.4
1918
18.0
1919
14.6
1920
15.6
1921
-10.5
1922
-6.1
1923
1.8
1924
0.0
1925
2.3
1926
1.1
1927
-1.7
1928
-1.7
1929
0.0
1930
-2.3
1931
-9.0
1932
-9.9
1933
-5.1
1934
3.1
1935
2.2
1936
1.5
1937
3.6
1938
-2.1
1939
-1.4
1940
0.7
1941
5.0
1942
10.9
1943
6.1
1944
1.7
1945
2.3
1946
8.3
1947
14.4
1948
8.1
1949
-1.2
1950
7.9
1951
1.9
1952
1.9
1953
0.8
1954
0.7
1955
-0.4
1956
1.5
1957
3.3
1958
2.8
1959
0.7
1960
1.7
1961
1.0
1962
1.0
1963
1.3
1964 1.3
1965
1.6
1966
2.9
1967
3.1
1968
4.2
1969
5.5
1970
5.7
1971
4.4
1972
3.2
1973
6.2
1974
11.0
1975
9.1
1976
5.8
1977
6.5
1978
7.6
1979
11.3
1980
13.6
1981
10.3
1983
6.2
1984
3.2
1985
4.3
1986
3.6
1987
1.9
1988
3.6
1989
4.1
1990
4.8
1991
5.4
1992
4.2
1993 3.0
1994
2.6
1995
2.8
1996
3.0
1997
3.2
1998
1.6
1999
2.2
2000
3.4
2001
2.8
2002
1.6
2003
2.3
2004
2.7
2005
3.4
2006
3.2
2007
2.8
2008
3.8
2009
-0.4
2010
1.6
2011
3.2
2012
2.1
2013
1.5
2014
1.6
2015
0.1
2016
1.3
2017
2.1
2018
2.4
Comments
The US
is an expensive country to live and do business in. We need to hold inflation
down by increasing our productivity in order to continue raising household
incomes. We also need to reduce the cost
of education, healthcare and eliminate unnecessary government spending. We need
to hold inflation under 3% and lower all debt. We need pipelines to increase
oil and LNG production. We need to reduce the national debt.
Norb Leahy, Dunwoody
GA Tea Party Leader
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