Before you read any further - what do you think the current inflation rate is?
OK now continue...
The Pew Research Center for People and the Press periodically does surveys to test political and economic knowledge. On a survey done last November, one result really surprised me.
Here are the responses on the inflation question. The percentage chosen is in the left column.
PEW.18 Do you happen to know if the national inflation rate reported by the government is closer
14 1% (Correct)
49 Don’t know/Refused (VOL.)
Basically 85% of those surveyed either had no remote idea of the inflation rate, or thought it was significantly higher. That 35% thought it was 10% or higher is amazing.
Here's a graph of the annual inflation rate. Inflation over 10% is very rare.