How Bad is the Inflation Rate in America? [INFOGRAPHIC]

Everyday, it seems as though people are worrying about the inflation rate. A recent rise in the rate of

has left some in the U.S. fretting. Increases in the prices of

may have hit the wallets of U.S. consumers hard. Yet, comparatively speaking, the current rate of inflation in the U.S. is relatively subdued, both from a historical perspective and with respect to other countries.

At present, the consumer price index in the U.S. is increasing at an annualized rate of 3.57%. While this rate of inflation is notably larger than it was just a year or two ago, it is still far less than in the early 1980's. When compared to other countries, the inflation rate in the U.S. looks positively tame: the rate of inflation in the U.S. is roughly half that of China's; while Venezuelans must contend with inflation over 20%. In Zimbabwe, inflation has increased so tremendously as to render their currency effectively worthless. These facts may help to put the current rate of inflation in perspective: perhaps economic commentators should cut the Fed some slack. Of course, it may be the opposite, perhaps the inflation rates in other countries foreshadow what is to come? If nothing else, charting the change in the inflation rate may provide some interesting historical perspective. In the U.S., the spike and resulting decline in the rate of inflation during the 1980's coincided with the Fed's aggressive interest rate hikes. The slight decrease in the CPI during the 1990's coincides with the implementation of hedonics—an adjustment in the way in which the CPI was calculated. In China, high inflation in the late 1980's and early 1990's coincided with civil unrest, including the Tiananmen Square incident. Japan's inflation rate has contracted, as the country has remained in relative economic recession for nearly two decades. No doubt, the rate of inflation is a huge an economic indicator, one that should be closely monitored. Yet, as with all things, one must maintain perspective.