12/6/21, 4:59 PM
The History of Inflation | Matthew Littlemore | Finance Blog
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The History of Inflation by matthewlittlemore | Dec 6, 2021 | Blog, Finance, Matthew Littlemore
After joining World War I, the US Government created the consumer price index (CPI) in 1917. Food price data was used to calculate the CPI beginning from 1913, a four-year period. From 1913 to 1919, inflation was uncontrollable, resulting in a collective total of nearly 98 percent. The causes of inflation during those times were the rising costs of WWI, followed by the influenza pandemic in 1918. The government placed money into shipbuilding centers causing a significant rise in the CPI by the end of 1919. Inflation was even higher from 1970 to 1979, reaching 102.91 percent. The US has experienced inflation at different levels throughout history, including high, low, and calm points. What is Inflation? Inflation is an increased rate in prices for food, utilities, fuel (automotive), energy, shelter, and other goods and services. A rise in prices is conveyed as a percentage for each category. This means that the US dollar buys less than it did in previous years. For example, during the 2020 Covid-19 pandemic, the government and Federal Reserve issued over $35 trillion into the economy. Although trillions of dollars prevented a https://matthewlittlemore.net/the-history-of-inflation/
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