With an inflation report due this week, investors will be looking for a continuation of a downtrend.
Today’s chart helps prepare for next week’s CPI report by presenting six inflation rate ranges versus the ensuing average S&P 500 12-month gain.
Conclusion…
The stock market has performed better following a relatively low inflation rate.
However, when the inflation rate was less than 5% as is currently the case, the stock market performed fairly well over the following 12 months.
On average.
![S&P 500 Gain vs Inflation Rate S&P 500 Gain vs Inflation Rate](https://www.chartoftheday.com/wp-content/uploads/charts/sp-500-gain-vs-inflation-rate.png?k)
What was the lowest U.S. inflation rate in history?
The lowest U.S. inflation rate since 1948 occurred in August 1949 and clocked in at a -3.0%.
What was the highest U.S. inflation rate in history?
The highest U.S. inflation rate since 1948 occurred in March and April of 1980 with a rate of 14.6%.
What is the inflation rate in 2022?
2022 closed with an inflation rate of 6.5%.