The Federal Reserve’s annual inflation target is 2%, since this is the number most likely to keep prices stable and ensure U.S. consumers can make sound financial decisions. But the ideal inflation rate isn’t always obtainable.
From 2020 to 2025, the cumulative inflation rate was 25.2%. In large part, this is due to the record-high 9.1% inflation over the 12 months ending in June 2022.
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