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| Year | Inflation rate, in % |
|---|---|
| 2028 | 2.10 |
| 2027 | 2.00 |
| 2026 | 2.00 |
| 2025 | 2.10 |
| 2024 | 2.30 |
| 2023 | 4.50 |
| 2022 | 8.00 |
| 2021 | 4.69 |
| 2020 | 1.25 |
| 2019 | 1.81 |
| 2018 | 2.44 |
| 2017 | 2.13 |
| 2016 | 1.26 |
| 2015 | 0.12 |
| 2014 | 1.62 |
| 2013 | 1.47 |
| 2012 | 2.07 |
| 2011 | 3.14 |
| 2010 | 1.64 |
- Region: United States
- Time period: 2010 to 2028
- Published: Apr 2023
Data Analysis and Insights
Peak inflation rate in 2022
The highest annual inflation rate was recorded in 2022 at 8.00%, indicating a significant surge in prices compared to other years.Inflation stabilization projection for 2024-2028
Projected inflation rates from 2024 to 2028 show a stabilization trend, with rates ranging between 2.00% and 2.30%, suggesting a return to the Federal Reserve's target rate.Lowest inflation rate in 2015
2015 saw the lowest inflation rate at just 0.12%, highlighting a period of exceptionally low price increases.Trend reversal in 2023
After peaking in 2022, the inflation rate in 2023 significantly decreased to 4.50%, marking a pivotal shift towards lowering inflation.Inflation rate consistency in 2026 and 2027
The inflation rates for 2026 and 2027 are both projected at 2.00%, indicating a period of economic stability and consistent monetary policy effectiveness.Significant inflation reduction from 2022 to 2023
The inflation rate experienced a notable decrease of 3.50 percentage points from 8.00% in 2022 to 4.50% in 2023, reflecting impactful economic adjustments or interventions.Inflation rate fluctuation from 2010 to 2028
Inflation rates from 2010 to 2028 fluctuated between 0.12% and 8.00%, showcasing the varying dynamics of economic conditions over the years.Transition to higher stability after 2023
After a period of higher volatility, inflation rates from 2024 onwards are projected to exhibit greater stability, aligning more closely with long-term economic targets.Frequently Asked Questions
What was the peak inflation rate in 2022?
The highest annual inflation rate was recorded in 2022 at 8.00%.
What does the inflation stabilization projection for 2024-2028 indicate?
The inflation rates from 2024 to 2028 are projected to stabilize at around 2.00% and 2.30%.
Which year recorded the lowest inflation rate?
The lowest inflation rate was recorded in 2015 at 0.12%.
Terms and Definitions
The annual inflation rate refers to the rate at which the general level of prices for goods and services is rising over a year. It's often measured by the Consumer Price Index (CPI). When the inflation rate rises, every dollar you own buys a smaller percentage of a good or service.
A projection in economics refers to the estimate or forecast of a future situation or trend based on a detailed study of present data. The process involves using statistical models and scenarios to predict what might happen in the future.
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. This 'basket' typically includes items such as transportation, food, and medical care. Changes in the CPI are used to assess price changes associated with the cost of living.
Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to limit inflation, and avoid deflation, to keep the economy running smoothly.
Deflation is the decrease in the general price level of goods and services, which is the opposite of inflation. Deflation happens when the inflation rate falls below 0%. In the long run, deflation can lead to an economic recession or depression.
An economic recession is a significant decline in economic activity that lasts more than a few months. It is visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.
An economic depression is a severe, long-term downturn in economic activity, more extreme than a recession. It's characterized by its length, by extraordinarily high unemployment, and by a significant fall in available credit.
Real Gross Domestic Product (Real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e., inflation or deflation). This adjustment transforms the money-value measure, nominal GDP, into an index for the quantity of total output.
Nominal Gross Domestic Product (Nominal GDP) calculates the value of all goods and services produced in an economy at the current prices, without taking inflation into account. It is higher than the real GDP as nominal GDP doesn’t adjust for inflation.
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U.K.: CPI Annual Inflation Rate, by year
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The annual CPI inflation rate in the UK reflects yearly changes in the cost of purchasing a representative basket of goods and services, including housing, utilities, food, and transportation.
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