A Third of a Century of U.S. Disinflation
October 24, 2014
After accelerating from 7.0% per annum during the three years to end-1978 to 11.0% during the three years to end-1981, core consumer price inflation slowed to 4.7% per year between end-1981 and end-1984, 4.1% in 1985-87, 4.7% in 1988-90, 3.6% in 1991-3, 2.8% in 1994-96, 2.2% in 1997-1999, 2.4% in 2000-02, 1.8% in 2003-05, 2.3% per annum in 2006-08, 1.6% in 2009-11, and 1.8% per annum between September 2011 and September 2014. Total CPI climbed 6.8% per annum between December 1975 and end-1978, then 11.6% in the ensuing three years to end-1981, 4.7% in the three years to end-1984 and 1.8% in the three years through September 2014. 1.8%, in turn, is only half as fast as the 3.6% average rate of total U.S. consumer price inflation during the past 64 years. Most economies around the world have experienced either falling prices or falling inflation this year.
Copyright 2014, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: U.S. CPI inflation
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