Inflation Concerns Are Premature

Investing.com

Published Feb 16, 2018 13:12

Investing.com - January's report on consumer prices triggered inflation alarms on Wall Street, but it's been a long time since inflation posed a serious threat.
Three decades of globalization have kept inflation in check, even during three of the longest economic expansions in U.S. history.
Inflation, as measured by consumer prices, has been under 4% in all but one year since 1991. For instance, during the decade-long economic boom of the 1990s, CPI averaged 2.66% a year. In the period before the Great Recession, the average annual rate was 2.78%.
It's been almost 30 years since inflation managed to spin out of control. It hit double-digits in 1979 and 1980, after a decade long advance.
Wall Street professionals from those days who are still around no doubt remember, but there's little chance they'll live to see inflation like that again.

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