According to CNN the economy is tanking

[All Mixed Up]

50. Over the last 30 years, the average inflation rate is around 2%.

We're still well above that.

To put that into context, the average for 2023 was 4.1%. Not counting the proceeding two years of Biden's term, that alone would be the highest average yearly inflation the US has seen since 1991, where it was 4.2%.

Right now, we're at an average of of about 3.3% the first three months of 2024 (and it's increased each month so far this year - from 3.1 in January, to 3.2 in February to 3.5 in March).

Excluding 2021, 2022 and 2023, that 3.3% average would be the highest yearly inflation average since 2008 (3.8).

Now I'm not even getting into the 8.0 average we saw in 2022, which was the highest yearly average since 1981.

The problem is that the US saw an incredible run of low inflation. From 2009 to 2020, the highest yearly average was in 2011 at 3.2. But that was just a blip.

2009: -0.4 (we actually saw deflation after the recession)
2010: 1.6
2011: 3.2
2012: 2.1
2013: 1.5
2014: 1.6
2015: .1
2016: 1.3
2017: 2.1
2018: 2.4
2019: 1.8
2020: 1.2

In just three years, from 2021 through 2023, the average inflation rate jumped by 16.8 points.

From 2011 to 2020, nine years, that rate only jumped by a total of 17.3 points.

In just three years, inflation jumped by nearly the same amount as the previous nine years combined on average.

That's why these numbers are not good. Because costs are already extremely high, especially compared to where they were in the 2010s.

If we were looking at a situation where 2021, 2022 and 2023 were, on average, 3.5 points - you'd have a point. It wouldn't be as big of a deal. Maybe some concern that the market was a bit too hot but nothing to be terribly concerned about.

Now, though? They're still well above normal when you factor in the last 30 years.

And the trend is ticking up, which should be the bigger concern here.

But the truth is that people are feeling it and high inflation persists because we're still seeing a decent-ish increase each month. At least compared to the last 30 years.