Chart: Consumer price inflation in the United Kingdom since the year 1210. Note the wild swings between inflation and deflation until a century ago. pic.twitter.com/34cp8DH5hN
— Michael R. Strain (@MichaelRStrain) May 23, 2019
The chart above shows the rate of consumer price inflation in the United Kingdom since the year 1210. These data were put together by the Bank of England, and show (among other things) price changes that are quite volatile. In previous centuries, it was common for prices to grow by double digits in one year and to fall at a similar rate just a few years later.
Imagine how disruptive this must have been for anyone trying to plan for the future.
About a century ago, this changed. Another reason to be thankful for modern central banking and a better understanding of macroeconomics.