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Charted: Four Decades of U.S. Inflation

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Four Decades of U.S. Inflation

Charted: Four Decades of U.S. Inflation

In May 2022, the annual rate of U.S. inflation grew to 8.6%—the highest it’s been in four decades, according to the Bureau of Labor Statistics.

What’s driving this surge, and what products are seeing the most significant price jumps?

This visualization by Pablo Alvarez shows U.S. inflation levels since 1982 and highlights a few product categories that have seen the biggest year-over-year increases.

The Category Breakdown

Perhaps unsurprisingly, energy sources have seen the biggest year-over-year climb. Gasoline has seen one of the biggest spikes, up 48.7% since May 2021.

Item% yearly change (May 2022)
Gasoline (all types)48.7%
Energy34.6%
Natural Gas30.2%
Electricity12.0%
Food10.1%
All items8.6%
Apparel5.0%

Across the U.S., the average price of gas sat at $4.807 per gallon as of July 4, and experts predict this figure could grow to $6 per gallon by the end of the summer.

While fuel prices were on the upswing prior to the Russia-Ukraine conflict, due to loosening COVID-19 restrictions and increased demand for travel, the conflict sent oil prices skyrocketing. This is because many countries placed sanctions on Russian oil, which put a squeeze on global supply.

Food has also seen a massive cost spike, up 10.1% since May 2021. This is largely due to supply-chain issues, increased transportation costs, and fertilizer shortages.

The Spending Spree Continues

Despite rising prices, many consumers have been continuing to spend. In May 2022, personal consumption expenditures (which account for inflation) were up 0.5% compared to the month prior, according to the Bureau of Economic Analysis.

Rather than adjust their spending habits, Americans have been relying on their savings to cope with price hikes. A recent survey of over 2,000 Americans showed that 67% of respondents have used some of their savings to deal with price increases, and 23% have made a substantial dent in their nest eggs.

To help combat inflation, central banks have been raising interest rates to encourage savings and ultimately slow down spending. But this is a delicate dance—if rates are raised too fast and spending screeches to a halt, this could lead to a recession.

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This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

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Economy

G20 Inflation Rates: Feb 2024 vs COVID Peak

We visualize inflation rates across G20 countries as of Feb 2024, in the context of their COVID-19 pandemic peak.

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How Far Have Inflation Rates Fallen Across the G20?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

A major economic consequence that arose in the aftermath of the COVID-19 pandemic was high inflation. In many countries, inflation rates reached double-digits, which is significantly higher than the 2-3% typically targeted by central banks.

Generally speaking, an extended period of fast rising prices is not optimal because it erodes the purchasing power of money. This makes everyday essentials like groceries, rent, and gas more expensive.

To see how inflation is currently faring, we’ve visualized annual inflation rates across G20 countries as of February 2024, in the context of their pandemic peak. This data was sourced from Trading Economics and can also be found in the table below.

CountryInflation (%, Feb 2024)Inflation (%, COVID peak)Date of Peak
🇦🇷 Argentina276.0----
🇹🇷 Turkey67.185.5Oct 2022
🇷🇺 Russia7.717.8Apr 2022
🇿🇦 South Africa5.67.8Jul 2022
🇮🇳 India5.17.8Apr 2022
🇧🇷 Brazil4.512.1Apr 2022
🇲🇽 Mexico4.48.7Sept 2022
🇦🇺 Australia4.17.8Dec 2022
🇬🇧 United Kingdom3.411.1Oct 2022
🇺🇸 United States3.29.1Jun 2022
🇰🇷 South Korea3.16.3Jul 2022
🇫🇷 France3.06.3Feb 2023
🇨🇦 Canada2.88.1Jun 2022
🇯🇵 Japan2.84.3Jan 2023
🇪🇸 Spain2.810.8Jul 2022
🇮🇩 Indonesia2.86Sept 2022
🇩🇪 Germany2.58.8Nov 2022
🇸🇦 Saudi Arabia1.86.2Jun 2021
🇮🇹 Italy0.811.8Oct 2022
🇨🇳 China0.72.8Sept 2022

Notes: Spain is a permanent guest of the G20. Australia’s latest inflation rate is as of Dec 2023.

Unlike other G20 nations, Argentina’s inflation rate has only gone up since the pandemic ended. This is largely due to the country’s history of printing money to compensate for government overspending.

One area hit particularly hard is food prices. According to a local consultancy, the price of beef to consumers rose by 40% to 70% between July to August 2023.

Learn More About Inflation in 2024

If you want to see more graphics on inflation, check out this global map that visualizes inflation forecasts for every country in 2024.

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