Year Inflation Rate YOY, From Previous Dec. Federal Funds Rate Business Cycle* Events Affecting Inflation
1929 0.60% NA August peak Market crash
1930 -6.40% NA Contraction (-8.5%) Smoot-Hawley Tariff Act
1931 -9.30% NA Contraction (-6.4%) Dust Bowl began
1932 -10.30% NA Contraction (-12.9%) Hoover tax hikes
1933 0.80% NA Contraction ended in March (-1.2%) FDR’s New Deal
1934 1.50% NA Expansion (10.8%) U.S. debt rose
1935 3.00% NA Expansion (8.9%) Social Security
1936 1.40% NA Expansion (12.9%) FDR tax hikes
1937 2.90% NA Expansion peaked in May (5.1%) Depression resumed
1938 -2.80% NA Contraction ended in June (-3.3%) Depression ended
1939 0.00% NA Expansion (8.0%) Dust Bowl ended
1940 0.70% NA Expansion (8.8%) Defense increased
1941 9.90% NA Expansion (17.7%) Pearl Harbor
1942 9.00% NA Expansion (18.9%) Defense spending
1943 3.00% NA Expansion (17.0%) Defense spending
1944 2.30% NA Expansion (7.9%) Bretton Woods Agreement
1945 2.20% NA February peak, October trough (-1.0%) WWII ends
1946 18.10% NA Contraction (-11.6%) Budget cuts
1947 8.80% NA Contraction (-1.1%) Cold War spending
1948 3.00% NA November peak (4.1%)
1949 -2.10% NA October trough (-0.6%) Fair Deal; NATO
1950 5.90% NA Expansion (8.7%) Korean War
1951 6.00% NA Expansion (8.0%)
1952 0.80% NA Expansion (4.1%)
1953 0.70% NA July peak (4.7%) Korean War ended
1954 -0.70% 1.25% May trough (-0.6%) Dow returned to 1929 high
1955 0.40% 2.50% Expansion (7.1%)
1956 3.00% 3.00% Expansion (2.1%)
1957 2.90% 3.00% August peak (2.1%) Recession began
1958 1.80% 2.50% April trough (-0.7%) Recession ended
1959 1.70% 4.00% Expansion (6.9%) Fed raised rates
1960 1.40% 2.00% April peak (2.6%) Recession began
1961 0.70% 2.25% February trough (2.6%) JFK’s deficit spending ended recession
1962 1.30% 3.00% Expansion (6.1%)
1963 1.60% 3.50% Expansion (4.4%)
1964 1.00% 3.75% Expansion (5.8%) LBJ Medicare, Medicaid
1965 1.90% 4.25% Expansion (6.5%)
1966 3.50% 5.50% Expansion (6.6%) Vietnam War
1967 3.00% 4.50% Expansion (2.7%)
1968 4.70% 6.00% Expansion (4.9%)
1969 6.20% 9.00% December peak (3.1%) Nixon took office; moon landing
1970 5.60% 5.00% November trough (0.2%) Recession
1971 3.30% 5.00% Expansion (3.3%) Wage-price controls
1972 3.40% 5.75% Expansion (5.3%) Stagflation
1973 8.70% 9.00% November peak (5.6%) End of the gold standard
1974 12.30% 8.00% Contraction (-0.5%) Watergate scandal
1975 6.90% 4.75% March trough (-0.2%) Stopgap monetary policy confused businesses and kept prices high
1976 4.90% 4.75% Expansion (5.4%)
1977 6.70% 6.50% Expansion (4.6%)
1978 9.00% 10.00% Expansion (5.5%)
1979 13.30% 12.00% Expansion (3.2%)
1980 12.50% 18.00% January peak (-0.3%) Recession began
1981 8.90% 12.00% July trough (2.5%) Reagan tax cut
1982 3.80% 8.50% Contraction (-1.8%) Recession ended
1983 3.80% 9.25% Expansion (4.6%) Military spending
1984 3.90% 8.25% Expansion (7.2%)
1985 3.80% 7.75% Expansion (4.2%)
1986 1.10% 6.00% Expansion (3.5%) Tax cut
1987 4.40% 6.75% Expansion (3.5%) Black Monday crash
1988 4.40% 9.75% Expansion (4.2%) Fed raised rates
1989 4.60% 8.25% Expansion (3.7%) S&L crisis
1990 6.10% 7.00% July peak (1.9%) Recession
1991 3.10% 4.00% March trough (-0.1%) Fed lowered rates
1992 2.90% 3.00% Expansion (3.5%) NAFTA drafted
1993 2.70% 3.00% Expansion (2.7%) Balanced Budget Act
1994 2.70% 5.50% Expansion (4.0%)
1995 2.50% 5.50% Expansion (2.7%)
1996 3.30% 5.25% Expansion (3.8%) Welfare reform
1997 1.70% 5.50% Expansion (4.4%) Fed raised rates
1998 1.60% 4.75% Expansion (4.5%) Long-term capital management crisis
1999 2.70% 5.50% Expansion (4.8%) Glass-Steagall Act repealed
2000 3.40% 6.50% Expansion (4.1%) Tech bubble burst
2001 1.60% 1.75% March peak, November trough (1.0%) Bush tax cut; 9/11 attacks
2002 2.40% 1.25% Expansion (1.7%) War on Terror
2003 1.90% 1.00% Expansion (2.8%) Jobs and Growth Tax Relief Reconciliation Act
2004 3.30% 2.25% Expansion (3.8%)
2005 3.40% 4.25% Expansion (3.5%) Hurricane Katrina; Bankruptcy Act
2006 2.50% 5.25% Expansion (2.8%)
2007 4.10% 4.25% December peak (2.0%) Bank crisis
2008 0.10% 0.25% Expansion (0.1%) Financial crisis
2009 2.70% 0.25% June trough (-2.6%) American Recovery and Reinvestment Act
2010 1.50% 0.25% Expansion (2.7%) Affordable Care Act; Dodd-Frank Act
2011 3.00% 0.25% Expansion (1.6%) Debt ceiling crisis
2012 1.70% 0.25% Expansion (2.3%)
2013 1.50% 0.25% Expansion (2.1%) Government shutdown, sequestration
2014 0.80% 0.25% Expansion (2.5%) Quantitative easing ends
2015 0.70% 0.50% Expansion (2.9%) Deflation in oil and gas prices
2016 2.10% 0.75% Expansion (1.8%)
2017 2.10% 1.50% Expansion (2.5%)
2018 1.90% 2.50% Expansion (3.0%)
2019 2.30% 1.75% Expansion (2.5%)
2020 1.40% 0.25% Contraction (-2.2%) COVID-19 pandemic
2021 7.00% 0.25% Expansion (5.8%) COVID-19 pandemic
2022 6.50% 4.50% Expansion (1.9%) Russia invades Ukraine
2023 3.40% 5.50% Expansion (2.5%) Fed raised rates
2024 2.9% 4.48% Expansion (2.8%)
