In today's Chart of the Day from Director of Research Daryl Jones, we look at inflation in the U.S. going back to the 1960s. The key period to look at is the 1970s and 1980s.

Inflation had massive peaks, then decelerations, and then re-accelerations to higher highs. The cumulative effect of this inflation was obviously punitive on the average consumer. This cycle eventually required a Fed Chair by the name of Paul Volcker to raise rates to a peak of +20% in 1981.

This is not to say that we will enter another period like that. On a very basic level, CPI is actually calculated very differently now. In fact, if we used the 1980s calculation reported inflation would actually be 6 to 8% points higher! 

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