Inflation Facts
Inflation Facts
1. In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.
2. As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.
3. A dollar from 1950 is now worth only $0.12
4. The term “inflation” is from the Latin term inflare, meaning to “blow up or inflate,” and it was first used in a monetary sense to describe “an increase in the amount of money” in 1838
5. The annual inflation rate in the United States has fluctuated greatly over its history, ranging from nearly zero inflation to 23% inflation. The federal government tries to keep inflation around 2-3%.
6. The Civil War’s direct cost was about $6.7 billion in 1860 money, which would be $139 billion today. However, some economic historians believe the indirect cost (such as disruption of the economy) would measure approximately $46 trillion in current money.
7. The movie Cleopatra cost $44 million to make in 1963. With inflation taken into account, the same movie would cost $300 million to make today
8. Hyperinflation occurred in Germany in 1920, leading to great social unrest. The purchasing power of money fell so low that the German currency, the Mark, became cheaper than firewood.
9. The Zimbabwean dollar bank note holds the record for the greatest number of zeros shown (100,000,000,000,000). Hungary holds the record for the largest banknote ever issued, but its bank note did not depict all the zeros—the amount was spelled out
10. The post-WWII hyperinflation of Hungary holds the record for the most rapid monthly inflation increase ever: 41,900,000,000,000,000% for July 1946, which means prices doubled every 13.5 hours.
11. In 2008, the top three countries with the most inflation were Zimbabwe (12,563.0%), Burma (35%), and Guinea (23.4%).
12. The first country to hyperinflation in the 21st century is
1. In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.
2. As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.
3. A dollar from 1950 is now worth only $0.12
4. The term “inflation” is from the Latin term inflare, meaning to “blow up or inflate,” and it was first used in a monetary sense to describe “an increase in the amount of money” in 1838
5. The annual inflation rate in the United States has fluctuated greatly over its history, ranging from nearly zero inflation to 23% inflation. The federal government tries to keep inflation around 2-3%.
6. The Civil War’s direct cost was about $6.7 billion in 1860 money, which would be $139 billion today. However, some economic historians believe the indirect cost (such as disruption of the economy) would measure approximately $46 trillion in current money.
7. The movie Cleopatra cost $44 million to make in 1963. With inflation taken into account, the same movie would cost $300 million to make today
8. Hyperinflation occurred in Germany in 1920, leading to great social unrest. The purchasing power of money fell so low that the German currency, the Mark, became cheaper than firewood.
9. The Zimbabwean dollar bank note holds the record for the greatest number of zeros shown (100,000,000,000,000). Hungary holds the record for the largest banknote ever issued, but its bank note did not depict all the zeros—the amount was spelled out
10. The post-WWII hyperinflation of Hungary holds the record for the most rapid monthly inflation increase ever: 41,900,000,000,000,000% for July 1946, which means prices doubled every 13.5 hours.
11. In 2008, the top three countries with the most inflation were Zimbabwe (12,563.0%), Burma (35%), and Guinea (23.4%).
12. The first country to hyperinflation in the 21st century is