Here is what my eye sees in the inflation data – a big increase starting in December 2010

Been thinking about the inflation data I posted earlier today. Also been thinking about data visualization – how do we accountants present data so other people can see what we see.  Lets go back to the monthly inflation data for the last 2 1/2 years.

I see a major change at the end of 2010. Inflation moved from a plateau of reasonable amounts (all things considered) to a high level.  All at once.  How to show that?

How about taking the inflation data in six months intervals? I calculated the average change for six month periods, consisting of the first and last 6 months of each year.

Now you can look at the following graph and immediately see what I see:

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