Inflation is at a 40 year high. What can history teach us?

Inflation measures the change in cost of living from one year to the next. So ideally, inflation would be low and stable. But economic shocks, like the COVID-19 pandemic, can cause inflation to increase sharply.

While today's inflation is high, we've seen it worse before. Lessons from previous shocks could indicate how this period might play out.

Inflation over time

Consumer Price Index (CPI)
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