the 25% inflation in the last 4 years-
From Perplexity...
what has been the rate of inflation in the u.s. over the past four years combined?
Answer
To calculate the combined inflation rate over the past four years in the U.S., we need to look at the annual inflation rates from 2020 to 2023. Here's a breakdown of the inflation rates for those years:
Annual Inflation Rates
- 2020: 1.23%
- 2021: 4.70%
- 2022: 8.00%
- 2023: 4.1%
Cumulative Inflation
To calculate the cumulative inflation over these four years, we can't simply add these percentages together. Instead, we need to compound the rates.The formula for compounding inflation is: (1+r1)∗(1+r2)∗(1+r3)∗(1+r4)−1(1+r1)∗(1+r2)∗(1+r3)∗(1+r4)−1Where r1, r2, r3, and r4 are the annual inflation rates expressed as decimals.Plugging in our values: (1+0.0123)∗(1+0.0470)∗(1+0.0800)∗(1+0.0410)−1=0.1907(1+0.0123)∗(1+0.0470)∗(1+0.0800)∗(1+0.0410)−1=0.1907
Result
The cumulative inflation rate over the past four years (2020-2023) in the United States was approximately 19.07%. This means that, on average, goods and services that cost $100 at the beginning of 2020 would cost about $119.07 at the end of 2023.It's worth noting that this period includes some significant economic events, particularly the COVID-19 pandemic and its aftermath. The year 2020 saw relatively low inflation, while 2021 and especially 2022 experienced higher-than-usual inflation rates as the economy recovered from the pandemic and faced supply chain disruptions.
and this year so far?
Answer
Based on the most recent data available, I can provide you with information on the inflation rate in the U.S. for 2024 so far:
2024 Inflation Rate
As of July 2024, the annual inflation rate in the United States decreased to 2.90%. This represents a slight decline from the 3% rate reported in June 2024.
Key Points
- The July 2024 inflation rate of 2.90% is the lowest since March 2021.
- Core inflation, which excludes volatile food and energy prices, also slowed to 3.2% in July 2024.
- The monthly inflation rate for July 2024 was 0.2%, rebounding from a 0.1% drop in June.
Contributing Factors
Several components contributed to the current inflation rate:
- Shelter costs rose 0.4% in July, accounting for nearly 90% of the monthly increase.
- Energy costs increased slightly more (1.1% vs 1% in June).
- Food inflation remained steady at 2.2%.
- Prices for new vehicles and used cars continued to decline.
Outlook
According to Trading Economics forecasts, the U.S. inflation rate is expected to be around 2.80% by the end of the third quarter of 2024. In the long term, it's projected to trend around 2.40% in 2025.It's important to note that this data represents the most recent figures available and reflects the economic conditions up to July 2024. The inflation rate can fluctuate based on various economic factors and policies.
