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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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Charted: The G7’s Declining Share of Global GDP

The G7’s share of global GDP has been shrinking since the early 2000s. See the full story in this infographic.

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Charting the G7’s Declining Share of Global GDP

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.

Formed in 1975, the G7 is a group of seven advanced economies (U.S., Canada, UK, Germany, France, Italy, Japan) that cooperates on economic policy and promotes global stability. At the time of the group’s inception, these countries were leading nations in the post-World War II economic order, and shared similar political and economic systems.

While much of this is still true today, the G7’s collective economic influence has fallen significantly as emerging nations in other parts of the world have grown.

To learn more about this trend, we’ve visualized the G7’s share of global GDP beside the G20’s, from 1990 to 2022. Numbers come from the World Bank, accessed via the Council on Foreign Relations.

Data and Key Takeaway

The G20 is an expanded group that was established with the goal of bringing together advanced and emerging economies to promote international cooperation. Major economies that are in the G20, but not in the G7, include China, India, Brazil, and Saudi Arabia.

The data we used to create this graphic can be found in the table below.

YearG7 share of GDP (%)G20 share of GDP (%)
19906680
19916681
19926781
19936782
19946782
19956681
19966580
19976481
19986580
19996681
20006581
20016581
20026580
20036480
20046279
20056078
20065878
20075577
20085276
20095376
20105077
20114877
20124777
20134677
20144677
20154678
20164778
20174678
20184578
20194578
20204678
20214478
20224478

From this dataset we can see that the G7’s share of global GDP has shrunk from 67% in 1994, to 44% in 2022.

Over this same time period, the G20’s share of global GDP has remained relatively steady near 80%. In short, this means that emerging markets are accounting for a relatively greater share of the world’s economy.

What Does This Mean for the G7?

Here are some possible consequences of the G7’s declining share of global GDP:

  • Reduced Global Influence: Diminished ability to shape global economic policies and standards.
  • Changes in Trade Dynamics: Potential shifts in trade relationships and alliances as other countries gain economic prominence.
  • Altered Investment Flows: Redirection of global investment towards faster-growing economies outside the G7.

Learn More About the Global Economy From Visual Capitalist

If you enjoyed this post, check out this infographic that visualizes the top six countries share of global GDP over time.

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