6 Things to Know About Inflation
BY: Lauren and Tanner
What is Inflation? What is Deflation? What is CPI?
Inflation is the rate of increase in prices for goods and services.
Deflation is a decease in the genera level of prices.
CPI is the number that compares the prices in one year with prices in some earlier base year.
When did Hyperinflation all start? How much has it been doubled?
Hyperinflation happened in Hungary in 1946 after World War II. The increase was 41,900,000,000,000,000% in July of 1946. So the prices of things doubled every 13 ½ hours.
What has Inflation effected?
Even movies shown in theaters deal with inflation. The top 5 movies after inflation are, Gone With the Wind, Star Wars, Sound of Music, ET: Extra Terrestrial, and The Ten Commandments. These movies did not make a lot of money back then but are worth a lot nowadays.
How is Inflation effecting the prices of houses?
In the 1950’s the average house price was about $16,000 in 2008 the average was $250,000. The average car back then sold for about $1,800 in 2008 it was $20,000. In the 1950’s the average salary a person earned was $3,000 in 2008 the average salary was $50,000.
Top inflation in the US History.
The highest point in which the inflation rate was in the U.S. was after the American Revolution which it was at 23%. The second highest was after the Civil War in which it was at 20%. The third highest was after the War of 1812 which was at 17%. The fourth highest was WWI which the inflation rate was also 17%. Finally the fifth highest was after WWII which was 13%.
Gas Prices with Inflation.
Gas is one of the top things affected by inflation. When the yearly increase inflation is low the gas prices are also low. When the yearly increase of inflation is high usually the gas prices are also very high with it.