Historically, there have been several periods of high inflation. When this has happened, it has tended to spike quickly– and unexpectedly.
What this chart shows
Over the past century, the U.S. and Europe have experienced a number of periods of high inflation. For example, hyperinflation hit post-WWII Europe, and, more recently, the U.S. had a period of higher inflation in the 1970s.
What it means for investors
Very high inflation tends to have a negative impact on assets such as stocks and bonds. Maintaining a constant allocation to inflation-hedging assets can help investors cushion their portfolios against unexpected spikes.