Average Inflation 1967 - 2007

The majority of the years experienced inflation rates below 7%, with 1967, 1968, and 1970 being notable exceptions. These years saw inflation rates above 6%, with 1967 reaching a peak of 3.3%. Inflation rates between 7% and 12% were relatively common, occurring in 1971, 1973, 1974, and 1975. These periods were marked by significant economic disruptions, including the 1973 oil embargo and the 1974-1975 recession. The inflation rate peaked at 11.3% in 1974. A smaller number of years experienced inflation rates between 12% and 20%. This range includes 1979, 1980, and 1981, which were characterized by high oil prices and a severe recession. The inflation rate reached a peak of 14.8% in 1980. Inflation rates between 20% and 30% were relatively rare, occurring only in 1980 and 1981. These periods were marked by high unemployment and a decline in economic output. The inflation rate peaked at 22.8% in 1980. A few years experienced inflation rates between 30% and 50%. This range includes 1980, which saw a peak inflation rate of 40.9%. The high inflation rate was driven by a combination of monetary policy mistakes and supply-side shocks. Only one year, 1980, experienced an inflation rate greater than 50%. The high inflation rate was driven by a combination of monetary policy mistakes and supply-side shocks.