US Inflation Rate
Current and historical CPI data. Understand what inflation means for your money, and how it interacts with interest rates and purchasing power.
What Does Today's Inflation Cost You?
See how much more something costs due to the current inflation rate.
What Is the CPI?
The Consumer Price Index (CPI) measures the average change in prices paid by urban consumers for a fixed basket of goods and services — including food, shelter, energy, clothing, medical care, and more. The Bureau of Labor Statistics (BLS) releases it monthly.
When the CPI rises, each dollar buys less than it did before. That loss of purchasing power is inflation.
Headline vs Core CPI
Headline CPI (2.4% in February 2026) includes all items — including volatile food and energy prices. It represents what consumers actually pay.
Core CPI (2.5% in February 2026) strips out food and energy. The Fed prefers this because it strips out short-term commodity shocks, showing the underlying trend more clearly.
February 2026 CPI Breakdown
| Category | Monthly Change | Annual Change |
|---|---|---|
| All items | +0.3% | +2.4% |
| Food | +0.4% | +3.1% |
| Energy | +0.6% | +0.5% |
| Shelter | +0.2% | +3.0% |
| Core CPI (ex food & energy) | +0.2% | +2.5% |
| Used cars & trucks | −3.2% | −3.2% |
| Apparel | +1.3% | — |
| New vehicles | 0.0% | +0.5% |
Historical Annual Inflation Rates
| Year | Annual CPI Inflation | Context |
|---|---|---|
| 2026 | 2.4%* | Feb 2026 YoY; Middle East tensions rising |
| 2025 | 2.7% | Average for 2025; continued normalization |
| 2024 | 2.9% | Annual average; above Fed target |
| 2023 | 3.4% | Significant deceleration from 2022 peak |
| 2022 | 8.0% | 40-year high; post-pandemic demand surge |
| 2021 | 4.7% | Inflation began accelerating post-COVID |
| 2020 | 1.2% | Pandemic demand collapse |
| 2019 | 2.3% | Near-target, stable |
| 2018 | 2.4% | On-target |
*Latest reading, Feb 2026 (year-over-year). Annual figures for complete years are calendar-year averages from BLS data.
Common Questions
What is the current US inflation rate?
As of February 2026 (the most recent BLS release), the CPI rose 2.4% year-over-year. Core CPI (excluding food and energy) rose 2.5%. The next report covering March 2026 data is due April 10, 2026.
What is the Fed's inflation target?
The Federal Reserve targets 2% inflation, measured by the PCE price index (not CPI). PCE tends to run slightly below CPI. With inflation at 2.4% on CPI, the Fed views it as "somewhat elevated" above target.
How does inflation affect savings accounts?
If your savings account pays less than the inflation rate, your money is losing real purchasing power even as the nominal balance grows. At 2.4% inflation, you need a return of at least 2.4% just to break even in real terms.
How is inflation different from the Fed funds rate?
Inflation is what's happening to prices. The Fed funds rate is the tool the Fed uses to influence inflation. Raising rates slows borrowing and spending, which cools demand and brings inflation down. See the Fed Funds Rate page for more.