It isn't as obvious, but inflation was the result of low interest rates for too long. Nearly free loans mean maxing out the economy. Sounds great until it peaks, not enough humans to work, not enough supply to feed demand... so prices rise. Pretty basic economics.
Look at your graph again. What you're seeing is an exponential curve, only interrupted when the interest rates rose.
So of course money got tight, loans got difficult, people got poorer. That's the point. You should feel lucky to have dodged where that line would have been in a few short years without rising interest rates.
Better late than never.