Chart 1
The U.S. Economy Enjoyed a Lower and More Stable
Inflationary Environment in the 1990s

Average and Standard Deviation of Annual Inflation Rates
(GDP Deflator-Based)
Date Average
Inflation Rate
Volatility
1950s 2.45% 1.9%
1960s 2.75% 1.6%
1970s 6.99% 1.9%
1980s 4.27% 2.1%
1990s 2.14% 0.7%

Source: Bureau of Economic Analysis