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Among the top concerns for consumers, inflation makes everyday expenses more expensive. As inflation rises, purchasing power decreases over time, meaning you get less while paying more. Inflation is influenced by a wide range of factors, and a president's actions can certainly play a role.
From tax cuts to wars and government aid, the president decides how to respond to high inflation or stimulate the economy during a slowdown.
To discover the yearly inflation rate by US president, check out the following slides.
The average yearly inflation rate under Eisenhower's presidency was 1.4%.
He ended the Korean War and had three recessions during his two terms in office, from 1953 to 1961.
While inflation remained relatively stable and low through the '50s, Eisenhower's administration didn't act to stimulate the economy during these times to keep postwar inflation at bay.
The average yearly inflation rate under President John F. Kennedy's presidency was 1.1%.
His administration helped end the 1960 recession by increasing spending and proposing tax cuts to stimulate the economy.
Sworn in just two hours after Kennedy’s assassination in November 1963, President Lyndon B. Johnson signed tax cuts proposed by Kennedy into law. The average yearly inflation rate under his presidency was 2.6%.
While the Johnson administration's expansionary measures boosted jobs and businesses, inflation rose to an annual average of 4.5% in 1966 and 5.75% in 1969.
Under President Richard Nixon, the average yearly inflation was 5.7%. His administration's economic policies led to a decade of stagflation, resulting from economic contraction and double-digit inflation.
The value of the dollar also fell during his presidency. The aftereffects of Nixon's economic policies are known as the Nixon Shock.
The average yearly inflation rate under President Gerald Ford was 8.0%, the second-highest of the presidents in this gallery.
Inheriting stagflation from Nixon's time, Ford's administration cut taxes, and reduced regulation to stabilize the economy. While these policies ended the recession, inflation remained high.
The average yearly inflation rate under President Jimmy Carter was 9.9%, the highest inflation rate among US presidents so far.
Stagflation continued from the Nixon and Ford years, and was propelled by an energy crisis that led to skyrocketing gas prices and shortages.
The average yearly inflation rate under Ronald Reagan's presidency was 4.6%. To combat the climbing inflation of the previous decade, the Federal Reserve increased the fed funds rate to 20%.
His administration's response to the persistent stagflation was to introduce economic policies known as Reaganomics.
These policies called for widespread tax cuts, more military spending, decreased social spending, and deregulation of domestic markets.
The average yearly inflation rate under George H.W. Bush's presidency was 4.3%. Inflation increased briefly from 1989 to 1991 as gas prices increased at the start of the first Gulf War.
His administration also faced a recession caused by the Savings & Loan Crisis, which lasted from 1990 to 1991.
The average yearly inflation rate under President Bill Clinton was 2.6%. During his two terms in the White House, Clinton faced no recessions or major wars.
The Clinton administration and policies, known as Clintonomics, lowered the US national debt and created a budget surplus.
President George W. Bush had an average yearly inflation of 2.8%.
Bush faced the 9/11 terrorist attacks, Hurricane Katrina, and the 2008 Great Recession, considered the most significant economic downturn since the Great Depression in the '30s.
The Bush administration sent out tax rebate checks to provide relief from the Great Recession of 2008.
The average yearly inflation rate under President Barack Obama was 1.4%. Inflation remained relatively low during his two terms.
Having inherited the economy during the Great Recession, Obama introduced the American Recovery and Reinvestment Act (ARRA), and included US$831 billion in government spending to end the Great Recession.
With an average yearly inflation rate of 1.9%, inflation remained low during Donald Trump's first presidency.
The COVID-19 pandemic brought a brief but severe recession, which the Trump administration responded to by passing measures such as the US$2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, in an attempt to provide relief to individuals and businesses.
The average yearly inflation rate during Joe Biden's presidency was approximately 4.95%. To stabilize prices and bring inflation closer to the Federal Reserve's 2% target, a series of interest rate hikes were implemented, raising the federal funds rate from 0% to 5.25% between March 2022 and August 2023.
By the end of 2024, the inflation rate had decreased to 2.9%.
In January, inflation in the US saw a slight increase as Donald Trump resumed office with a promise to swiftly lower prices.
With the inflation currently at 2.8%, economists are concerned that widespread disinflation may have ended, as President Trump's policies on tariffs and immigration could drive prices higher this year.
Sources: (Investopedia) (ABC News)
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LIFESTYLE Economy
Among the top concerns for consumers, inflation makes everyday expenses more expensive. As inflation rises, purchasing power decreases over time, meaning you get less while paying more. Inflation is influenced by a wide range of factors, and a president's actions can certainly play a role.
From tax cuts to wars and government aid, the president decides how to respond to high inflation or stimulate the economy during a slowdown.
To discover the yearly inflation rate by US president, check out the following slides.