Indicator 1979 1988
CPI inflation, annual average ~11.3% ~4.1%
CPI inflation, Dec. year-over-year 13.3% ~4.4%
Unemployment, annual average ~5.8% ~5.5%
Unemployment at year-end ~6.0% ~5.3%
Effective federal funds rate, approximate annual average ~11.2% ~7.6%
General condition Stagflation / inflation crisis Strong expansion
The 1979 economy
Inflation: about 11.3%
Inflation wasn’t merely high. It was accelerating rapidly.
CPI inflation went approximately:
• January: 9.3%
• June: 10.9%
• September: 12.2%
• December: 13.3%