Question

Over the last century, during what periods was the U.S. inflation rate highest and lowest?

Short answer

There is more than one instance when this happens.

Step-by-step solution

Step 1. Definition

Inflation is the rate at which prices increase over a period of time. Inflation is a broad measure, For example, the increase in prices or the increase in the cost of living in a country.

Step 2. U.S.

In United States, period of deflation that is negative inflation is the period of world war I and world war II .

In 1930 inflation in the US was at its lowest. The reasons behind this is that time most banks were unregulated and uninsured and also because of feds policies . This was a period of great depression.

And highest level of inflation was in 1970 ,because of various reasons like central bank policy, Keynesian economic policy, the abandonment of the gold window, etc. all contributed to this.