Question

If you had to predict the U.S. inflation rate for next year and decided that a good way to make that prediction would be to simply use the average inflation rate over the past 10 years, what would be your prediction for U.S. inflation next year?

Answer 1

Answer:

Taking into account that the inflation of the United States in the last ten years has been as follows:

2019 --- 2.29%

2018 --- 1.91%

2017 --- 2.11%

2016 --- 2.07%

2015 --- 0.73%

2014 --- 0.76%

2013 --- 1.50%

2012 --- 1.74%

2011 --- 2.96%

2010 --- 1.50%

2009 --- 2.72%

The total sum of all inflation percentages gives a total of 20.29%, which divided by 10 years gives an average inflation of 2.03%. Therefore, if I decided that a good way to make the inflation prediction for 2020 would be to use the average inflation rate over the past 10 years, inflation in 2020 would be of 2.03%.