Top 10 interesting facts about Inflation

  • Inflation is defined as an increase in the overall level of prices for goods and services over time: the inflation rate is defined as the yearly % change in the general price index (consumer price index)

  • When prices rise, we have less money to spend on goods and services: inflation represents a decrease in our purchasing power.

  • When we lose purchasing power, we buy less; when we all buy less, businesses close and individuals lose their jobs.



  • Printing money so that we can all keep purchasing and working is not the solution; in fact, it's like pouring fuel to the fire: an increase in circulation of money might generate an increase in demand for a certain commodity or service, causing the price to rise since supply does not match demand levels.

  • A dollar in 1950 was worth the same as $10.23 in 2017.

  • Historians have observed that war and inflation are inextricably linked. Every conflict during the last century has resulted in significant inflation.

  • The inflation rate in the United States has ranged from almost zero to 23 percent. The yearly inflation rate in the United States has varied widely throughout its history, ranging from almost zero to 23 percent. The federal government strives to limit inflation between 2-3%.



  • If inflation is kept under control, it may be a beneficial factor in the economy. It has the potential to stimulate the economy, ameliorate recessions, increase corporate profitability, enhance worker pay, and lower the real amount of debt.

  • Countries on the Gold Standard from the 18th century through 1914 witnessed minimal or no inflationary trends.

  • Inflation has caused two currency crises in the United States. During the Revolutionary War, the Continental Currency was the first. During the Civil War, the second was Confederation notes.

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