Has the U.S. economy consistently experienced inflation since 2008? Was there consistently inflation prior to 2008?

Expert Solution

Inflation in the United States (as measured by the consumer price index) has been consistently positive since 2009. The United States economy had slipped into deflation for a brief period in 2009 when the financial crisis resulted in a deep recession for few quarters.

However, it is important to note that consumer price inflation has remained relatively subdued since the financial crisis. This is one of the points mentioned by the Federal Reserve in it's current decision to wait before any further rate hike. The consumer price inflation has remained around the federal reserve target inflation rate of 2.0%

Looking back, inflation in the United States surged in 1980 with the consumer price index based inflation at 13.55% for 1980. However, inflation moderated in the 1990s and for the period 2000-2008. However, on an average, inflation was higher in the period of 1990 to 2008 than it has been in the period of 2009 to 2018.

Overall, the United States has witnessed sustained inflation and this is an important analysis because wages and salaries need to be adjusted for inflation to determine the loss or gain in purchasing power of individuals over a period.

Rahul Sunny answered 1 year ago

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Has the U.S. economy consistently experienced inflation since 2008? Was there consistently inflation prior to 2008?

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