Kiplinger has taken a fresh approach to evaluating U.S. presidents by focusing on inflation rather than stock market performance. The analysis uses the Consumer Price Index for All Urban Consumers (CPI-U) to measure how each president's term impacted inflation, with data spanning from 1948 to the present.
The list reveals that Jimmy Carter tops the chart with the highest average inflation at 9.75%, followed by Gerald Ford at 8.13% and Richard Nixon at 5.66%. Joe Biden's term saw an average inflation of 4.90%, the only recent presidency where inflation exceeded the long-term average of 3.52%. In contrast, Donald Trump's second term has so far maintained below-average inflation at 2.98%, despite recent tariffs and the Iran War driving up energy prices.
The article highlights that while presidents influence inflation, they are not the sole determinants. The Federal Reserve and external factors like global supply-chain disruptions and geopolitical conflicts also play significant roles. For instance, Biden's $1.9 trillion American Rescue Plan Act contributed to inflation, but the surge was largely driven by post-COVID recovery and the Ukraine war.
Looking at the five most recent presidencies, George W. Bush's term had an average inflation of 2.89%, while Barack Obama's saw the lowest at 1.39%. The analysis underscores how inflation can shape political legacies, with recent elections and polls reflecting its impact on voter decisions.