Why 7% Inflation Today Is Far Different Than in 1982

[mahatmakanejeeves]

ECONOMY | U.S. ECONOMY

Why 7% Inflation Today Is Far Different Than in 1982

Economic problems in the early ’80s bear little similarity to current challenges

By Greg Ip
https://twitter.com/greg_ip
Jan. 12, 2022 1:29 pm ET

Consumer price inflation in December, at 7%, was last this high in the summer of 1982. That’s about all the two periods have in common.

Today, the inflation rate is on the rise. Back then, it was falling. It had peaked at 14.8% in 1980, while Jimmy Carter was still president and the Iranian revolution had pushed up oil prices. Core inflation that year reached 13.6%.

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[MichMan]

1. Perhaps a comparison to 1979-80 will be more accurate in a few month's time

[Hoyt]

2. If inflation is still high in August, calling it temporary, different, hoax, etc.,

won’t help us at polls.

[Laura PourMeADrink]

3. Unfortunately heard economist say high inflation will last 12-18 months nt

[Hoyt]

4. Thanks. It's going to be an issue, hopefully the response will appease key voters.

Don’t think 100% inflation, and all the miserableness that would create for poor, would make me think GOPers would correct the problem.

But wouldn’t be first time inflation was THE issue of the election. Not panicking yet, because I have faith in our leaders. Not sure I have faith in fate.

[Laura PourMeADrink]

5. I think if we step back and think about how two years

of the entire nation dealing with a pandemic, its actually quite amazing our world had survived as well as it has. Our economy has been resilient. Businesses have gone under, whole industries suffering, people out sick, people dying, relief dollars spent, an attempted coup on our government. And we're still ticking.

Sometimes it seems like people think after all we've been through that everything should be the exact same way it was before all this happened.

[Farmer-Rick]

6. So the difference between now and the 1980s

Is that in the 80s it was coming down from over 14 percent

And now it's is going up from less than 2 percent.

So, it seems 7% is just a number we quickly move past.