Here’s a constant if there ever was one. Since January 2000, our trusty 16% trimmed mean CPI has risen at 2.24% per annum, a rate that has scarcely varied over the entire 21 year period. That means a dollar of savings at the turn of the century is now worth just 61 cents.
The proof that the mad money-printers in the Eccles Building did not loose their inflationary touch over that extended period is embodied in the two figures below. That is, the inflation CAGR for the first 12 years of the century is exactly the same as that for the nine years after the Bernank foisted the misbegotten idea of inflation targeting on the Fed in January 2012. And we mean “exactly the same” to the second decimal place!