by Kelsey Williams
GoldSeek
NOTE: Part of the article I posted did not show up in the referral link sent with the standard email announcement. The text below is everything that followed the CPI bar chart.
Inflation – How It Started And Where We Are Now
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We can see on the chart that the annual CPI rate is under 5% almost eighty percent of the time and that prices actually dropped about ten percent of the time (red years 1920’s, 1930’s). The potential for volatility increases, though, because of the cumulative effects of inflation.
CUMULATIVE EFFECTS OF INFLATION
The first year pictured on the chart is 1914, one year after the inception (1913) of the Federal Reserve. Prices rose by one percent in 1914, followed by a rise of almost two percent in 1915.