United States Inflation Rates by Year 2025
The economic landscape of the United States continues to evolve as we navigate through 2025, with inflation rates serving as a critical barometer of the nation’s financial health. Understanding the current trajectory of inflation in the US has become essential for consumers, businesses, and policymakers alike. The Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for goods and services, remains the primary indicator for tracking yearly inflation rates in US markets.
As of August 2025, the United States has experienced significant shifts in inflation patterns, with the latest data from the Bureau of Labor Statistics revealing important trends that affect everyday Americans. The inflation rate in US 2025 reflects a complex interplay of economic factors, including energy costs, housing prices, food expenses, and core goods and services. These metrics provide crucial insights into purchasing power, cost of living adjustments, and overall economic stability across the nation.
Key Inflation Facts and Latest Statistics for 2025
| Inflation Metric | July 2025 Data | June 2025 Data | May 2025 Data | Year-over-Year Change |
|---|---|---|---|---|
| Overall CPI-U Annual Rate | Pending Release | 2.7% | 2.4% | +0.3% increase |
| Core CPI (excluding food and energy) | Pending Release | 2.9% | 2.9% | No change |
| Food Inflation Rate | Pending Release | 3.0% | 2.8% | +0.2% increase |
| Energy Price Change | Pending Release | -0.8% | -1.2% | +0.4% improvement |
| Shelter Costs (Housing) | Pending Release | 3.8% | 3.7% | +0.1% increase |
| Monthly CPI Change | Pending Release | 0.3% | 0.1% | +0.2% increase |
| Gasoline Price Change | Pending Release | -8.3% | -7.8% | -0.5% decline |
The inflation rates in US by year demonstrate a moderate uptick from previous months, with the Consumer Price Index for All Urban Consumers (CPI-U) reaching 322.561 in June 2025 compared to 314.175 in June 2024. This represents a 2.7% annual increase, marking a significant economic indicator that affects millions of American households. The yearly inflation rates in US for 2025 show particular strength in housing and food sectors, while energy costs continue to provide some relief to consumers through declining gasoline prices.
The latest government statistics reveal that inflation in the US 2025 has been influenced by several key factors. Housing costs, which represent the largest component of the CPI at 35.5% of the total index, increased by 3.8% year-over-year. Food prices rose by 3.0% annually, with food away from home experiencing a 3.8% increase compared to food at home at 2.4%. Conversely, energy prices declined by 0.8% over the 12-month period, primarily driven by an 8.3% decrease in gasoline prices, providing some offset to other inflationary pressures. As the July 2025 data approaches—due for release on August 12, 2025—economists are watching whether core inflation maintains its current trajectory or begins to decline toward the Federal Reserve’s 2% target, which would signal easing price pressures in the broader economy.
Inflation Rates in US by Year
| Year | Annual Inflation Rate | Key Economic Events | Inflation Category |
|---|---|---|---|
| 2025 | 2.7% (June YTD) | Post-pandemic recovery, housing costs | Moderate |
| 2024 | 2.9% | Federal Reserve policy normalization | Moderate |
| 2023 | 4.1% | Supply chain recovery, labor market | Elevated |
| 2022 | 8.0% | Peak inflation, energy crisis, supply chains | Very High |
| 2021 | 4.7% | COVID-19 recovery, stimulus spending | High |
| 2020 | 1.2% | Pandemic lockdowns, economic contraction | Low |
| 2019 | 1.8% | Pre-pandemic stable economy | Low |
| 2018 | 2.4% | Economic growth, trade tensions | Moderate |
| 2017 | 2.1% | Federal Reserve rate increases | Moderate |
| 2016 | 1.3% | Energy price declines | Low |
| 2015 | 0.1% | Oil price collapse, global slowdown | Very Low |
| 2014 | 1.6% | Post-recession recovery | Low |
| 2013 | 1.5% | Quantitative easing effects | Low |
| 2012 | 2.1% | Economic recovery continuation | Moderate |
| 2011 | 3.2% | Recovery from Great Recession | Moderate |
| 2010 | 1.6% | Great Recession recovery | Low |
| 2009 | -0.4% | Great Recession, deflation | Deflationary |
| 2008 | 3.8% | Financial crisis, commodity spikes | High |
| 2007 | 2.8% | Pre-financial crisis | Moderate |
| 2006 | 3.2% | Housing bubble period | Moderate |
| 2005 | 3.4% | Energy price increases | Moderate |
The yearly inflation rates in US from 2005 to 2025 demonstrate significant economic volatility over the past two decades. The most dramatic period occurred from 2021 to 2022, when inflation in US surged from 4.7% to 8.0%, representing the highest inflation rate since the early 1980s. This surge was primarily attributed to pandemic-related supply chain disruptions, expansionary fiscal and monetary policies, energy price volatility, and pent-up consumer demand. The 2022 peak of 8.0% marked a critical inflection point that prompted aggressive Federal Reserve intervention through interest rate increases.
The historical data reveals three distinct inflationary periods over the past 20 years: the stable pre-crisis period (2005-2007) with moderate 2.8% to 3.4% rates, the Great Recession era (2008-2015) characterized by volatility ranging from deflationary -0.4% in 2009 to 3.8% in 2008, and the recent post-pandemic surge (2021-2025) showing the most dramatic inflation cycle in modern US economic history. The yearly inflation rates in US for 2025 at 2.7% suggest a return toward Federal Reserve targets, though challenges remain in housing and services sectors.
Annual US Inflation Rates Breakdown by Sector for 2025
The yearly inflation rates in US 2025 by economic sector reveal distinct patterns that shape the overall price environment across the nation. According to comprehensive Bureau of Labor Statistics data, sector-specific inflation in US demonstrates varying degrees of price pressure that collectively determine the national inflation trajectory. The 2.7% overall annual inflation rate masks significant variations among different categories of goods and services, with housing, food, and energy sectors showing particularly notable patterns.
Service sector inflation in US 2025 continues to drive overall price increases, with services less energy rising 3.6% annually compared to goods inflation of just 0.6%. This divergence reflects persistent labor market strength in service industries, where wage pressures and demand for services continue to support higher prices. The durability of service-sector inflation suggests that yearly inflation rates in US will remain elevated even as goods prices moderate, indicating structural changes in the post-pandemic economy.
Current Inflation Trends in the US for 2025
| Month | Annual Change vs Previous Year | Annual Rate | Core Inflation |
|---|---|---|---|
| January 2025 | 2.6% vs Jan 2024 | 2.6% | 2.8% |
| February 2025 | 2.5% vs Feb 2024 | 2.5% | 2.7% |
| March 2025 | 2.4% vs Mar 2024 | 2.4% | 2.8% |
| April 2025 | 2.3% vs Apr 2024 | 2.3% | 2.9% |
| May 2025 | 2.4% vs May 2024 | 2.4% | 2.9% |
| June 2025 | 2.7% vs June 2024 | 2.7% | 2.9% |
| July 2025 | Data to be released Aug 12, 2025 | Pending | Pending |
The year-over-year inflation rates in US for 2025 reveal interesting patterns in how prices have evolved throughout the first half of the year compared to the same periods in 2024. January 2025 began with a 2.6% annual rate, which gradually declined to 2.3% by April before rising to 2.7% by June. This trajectory demonstrates the ongoing challenge of achieving sustained price stability, with inflation in US 2025 showing resilience against monetary policy tightening measures implemented throughout 2023 and 2024. The July 2025 data, scheduled for release on August 12, 2025, will provide crucial insights into summer inflation trends.
Annual core inflation rates in US for 2025, which exclude volatile food and energy prices, have remained remarkably stable throughout 2025, maintaining a consistent range between 2.8% to 2.9%. This stability indicates that underlying inflationary pressures in goods and services beyond food and energy remain controlled, suggesting that monetary policy measures have been effective in managing broad-based price increases. The consistency in yearly core inflation rates in US provides confidence that the overall inflation in US 2025 remains within manageable bounds despite sector-specific volatility.
Annual Food and Energy Inflation Analysis in the US for 2025
| Category | Annual Change | Monthly Change (June) | Impact on Overall CPI |
|---|---|---|---|
| Food (Total) | 3.0% | 0.3% | 0.41 points |
| Food at Home | 2.4% | 0.3% | 0.19 points |
| Food Away from Home | 3.8% | 0.4% | 0.21 points |
| Energy (Total) | -0.8% | 0.9% | 0.06 points |
| Gasoline | -8.3% | 1.0% | 0.03 points |
| Electricity | 5.8% | 1.0% | 0.02 points |
| Natural Gas | 14.2% | 0.5% | 0.01 points |
Annual food inflation in the US 2025 has emerged as a significant component of overall price increases, with yearly food price growth at 3.0% exceeding the general inflation rate. The disparity between food at home (2.4% annually) and food away from home (3.8% annually) reflects ongoing labor cost pressures in the restaurant and hospitality industries. Specific food categories showing notable yearly increases in US 2025 include eggs (27.3% annually), nonalcoholic beverages (4.4% annually), and meats, poultry, fish, and eggs (5.6% annually). These increases significantly impact household budgets, particularly for lower-income families who spend a higher percentage of their income on food.
Annual energy price trends in the US for 2025 present a mixed picture, with overall energy costs declining 0.8% on a year-over-year basis while showing month-to-month volatility. Yearly gasoline prices in US declined 8.3% compared to 2024, providing substantial relief for consumers and transportation costs. However, electricity costs rose 5.8% annually, and natural gas prices surged 14.2% year-over-year, creating challenges for households managing utility expenses. These yearly energy cost variations in US 2025 reflect global oil market dynamics, seasonal demand patterns, and regional supply chain factors affecting different parts of the United States.
Food and Energy Inflation by Year in the US – Last 10 Years (2015-2025)
| Year | Food Inflation Rate | Energy Inflation Rate | Food Impact | Energy Impact |
|---|---|---|---|---|
| 2025 | 3.0% (June YTD) | -0.8% (June YTD) | Elevated restaurant costs | Gasoline relief, utility pressure |
| 2024 | 2.2% | -2.0% | Moderate grocery inflation | Energy price declines |
| 2023 | 5.8% | -3.4% | Peak food cost crisis | Post-spike energy correction |
| 2022 | 10.4% | 32.9% | Severe food inflation | Energy crisis peak |
| 2021 | 6.3% | 25.1% | Supply chain disruption | Energy recovery surge |
| 2020 | 3.9% | -9.4% | Pandemic food pressures | Oil price collapse |
| 2019 | 1.8% | -4.7% | Stable food costs | Energy price declines |
| 2018 | 1.6% | 10.9% | Low food inflation | Energy price recovery |
| 2017 | 1.3% | -6.2% | Minimal food increases | Continued energy weakness |
| 2016 | 0.2% | -12.7% | Near-zero food inflation | Major energy price decline |
| 2015 | 1.6% | -16.7% | Modest food increases | Energy collapse begins |
Food and energy inflation by year in the US over the last decade demonstrates extreme volatility, particularly during the 2020-2022 period when supply chain disruptions, pandemic effects, and geopolitical events created unprecedented price pressures. Food inflation in US by year peaked at 10.4% in 2022, representing the highest food price increases since the 1970s, while energy inflation reached 32.9% the same year due to global energy supply disruptions and geopolitical tensions affecting oil and gas markets.
The yearly food and energy trends in US show remarkable resilience and recovery patterns, with energy inflation transitioning from extreme highs of 32.9% in 2022 to negative -0.8% in 2025, providing substantial consumer relief. Annual food inflation has moderated from 2022 peaks but remains elevated at 3.0% in 2025, reflecting persistent labor costs in food services and ongoing agricultural supply chain challenges. These decade-long patterns in US food and energy inflation illustrate how external shocks can create sustained inflationary pressures that take years to fully resolve.
Annual Regional Inflation Variations in the US for 2025
| Region | Annual Inflation Rate | Monthly Change (June) | Key Factors |
|---|---|---|---|
| Northeast | 3.0% | 0.5% | Housing costs, energy |
| Midwest | 3.0% | 0.7% | Food, transportation |
| South | 2.3% | 0.3% | Energy benefits |
| West | 2.7% | 0.1% | Housing, technology |
| Urban Areas (Size Class A) | 2.6% | 0.4% | Services, shelter |
| Smaller Cities (Size Class B/C) | 2.7% | 0.3% | Goods, food |
Annual regional inflation rates in US for 2025 demonstrate significant geographic variations, with the Northeast and Midwest experiencing the highest yearly rates at 3.0% each, while the South enjoys relatively lower annual inflation at 2.3%. These yearly regional differences in US inflation reflect local economic conditions, housing market dynamics, and energy cost variations. The Northeast’s higher annual inflation rate stems from elevated housing costs and energy expenses, while the South benefits from lower energy costs and more moderate housing price increases throughout 2025.
Annual inflation rates in US urban areas with populations over 2.5 million (Size Class A) show slightly lower yearly inflation at 2.6% compared to smaller cities and rural areas at 2.7% annually. This pattern suggests that larger metropolitan areas may have more efficient distribution systems and competitive markets that help moderate yearly price increases in US 2025. The consistency of these annual regional patterns indicates structural economic differences that persist across different geographic areas of the United States.
Regional Inflation by Year in the US – Last 10 Years (2015-2025)
| Year | Northeast | Midwest | South | West | Urban Areas | Rural Areas |
|---|---|---|---|---|---|---|
| 2025 | 3.0% | 3.0% | 2.3% | 2.7% | 2.6% | 2.7% |
| 2024 | 3.2% | 2.8% | 2.7% | 3.1% | 2.9% | 2.9% |
| 2023 | 4.3% | 3.9% | 3.8% | 4.5% | 4.1% | 4.0% |
| 2022 | 8.2% | 7.8% | 7.9% | 8.4% | 8.0% | 7.9% |
| 2021 | 4.9% | 4.6% | 4.5% | 5.1% | 4.7% | 4.6% |
| 2020 | 1.4% | 1.2% | 1.0% | 1.3% | 1.2% | 1.1% |
| 2019 | 1.9% | 1.7% | 1.6% | 2.1% | 1.8% | 1.7% |
| 2018 | 2.5% | 2.3% | 2.2% | 2.8% | 2.4% | 2.3% |
| 2017 | 2.2% | 2.0% | 1.9% | 2.4% | 2.1% | 2.0% |
| 2016 | 1.4% | 1.2% | 1.1% | 1.6% | 1.3% | 1.2% |
| 2015 | 0.2% | 0.1% | -0.1% | 0.4% | 0.1% | 0.0% |
Regional inflation by year in the US over the last decade reveals consistent geographic patterns, with the West and Northeast typically experiencing higher yearly inflation rates than the South and Midwest. The 2022 inflation surge affected all regions similarly, with rates ranging from 7.8% to 8.4%, demonstrating that the inflationary pressures were truly national in scope. The West consistently shows the highest annual inflation rates due to housing costs, while the South benefits from lower energy and housing expenses.
Decade-long regional inflation trends in US show that urban areas generally experience slightly higher yearly inflation rates than rural areas, though the differences have narrowed over time. The 2015 period saw some regions experience deflationary pressures, particularly in the South with -0.1% annual inflation, while 2025 shows a return to more typical regional variations. These annual regional inflation patterns in US reflect local economic conditions, housing market dynamics, labor costs, and proximity to major ports and distribution centers that influence goods pricing.
Annual Housing and Shelter Costs Impact on US Inflation for 2025
| Housing Component | Annual Increase | Monthly Change | CPI Weight |
|---|---|---|---|
| Shelter (Total) | 3.8% | 0.2% | 35.5% |
| Rent of Primary Residence | 3.8% | 0.2% | 7.5% |
| Owners’ Equivalent Rent | 4.2% | 0.3% | 26.2% |
| Lodging Away from Home | -2.5% | -2.9% | 1.4% |
| Water and Sewer Services | 5.4% | 0.4% | 1.1% |
Annual housing inflation in the US 2025 represents the most significant driver of yearly price increases, with shelter costs accounting for approximately 35.5% of the total CPI and increasing 3.8% year-over-year. The owners’ equivalent rent, which measures the amount homeowners would pay to rent their homes, rose 4.2% annually compared to 2024, reflecting continued strength in housing markets across the nation. This component alone contributes substantially to overall yearly inflation in US given its 26.2% weight in the CPI calculation.
The persistence of annual housing cost increases in US 2025 reflects ongoing supply and demand imbalances in many metropolitan areas. Despite some moderation in home price appreciation, the rental market continues to experience upward pressure from demographic trends, limited new construction, and regional economic growth. Water and sewer services increased 5.4% annually, representing additional housing-related cost pressures that affect homeowners and renters alike throughout 2025. These yearly housing inflation trends in US suggest sustained pressure on overall inflation rates due to the structural nature of housing supply constraints.
Housing and Shelter Costs Impact by Year in the US – Last 10 Years (2015-2025)
| Year | Shelter Inflation | Rent Inflation | Owners’ Equivalent Rent | Housing Weight in CPI | Housing Impact on Total CPI |
|---|---|---|---|---|---|
| 2025 | 3.8% | 3.8% | 4.2% | 35.5% | 1.35 points |
| 2024 | 5.5% | 5.7% | 5.4% | 35.2% | 1.94 points |
| 2023 | 7.7% | 8.2% | 7.4% | 34.8% | 2.68 points |
| 2022 | 5.6% | 6.1% | 5.4% | 34.4% | 1.93 points |
| 2021 | 4.1% | 4.6% | 3.9% | 34.0% | 1.39 points |
| 2020 | 2.0% | 2.3% | 1.8% | 33.8% | 0.68 points |
| 2019 | 3.2% | 3.5% | 3.1% | 33.6% | 1.08 points |
| 2018 | 3.4% | 3.7% | 3.3% | 33.3% | 1.13 points |
| 2017 | 3.8% | 4.1% | 3.6% | 33.1% | 1.26 points |
| 2016 | 3.9% | 4.2% | 3.7% | 32.9% | 1.28 points |
| 2015 | 3.2% | 3.6% | 3.0% | 32.7% | 1.05 points |
Housing and shelter costs impact by year in the US over the last decade demonstrates the dominant role of housing in driving overall yearly inflation rates. The peak housing inflation occurred in 2023 at 7.7%, contributing 2.68 points to overall inflation, making it the single largest driver of price increases during that period. Annual housing inflation in US has consistently exceeded overall inflation rates, reflecting structural supply constraints and demographic pressures that persist across economic cycles.
Decade-long housing inflation trends in US show that shelter costs have steadily increased their share of the Consumer Price Index from 32.7% in 2015 to 35.5% in 2025, reflecting the growing importance of housing costs in American household budgets. The yearly impact of housing on US inflation reached extreme levels during 2023, when housing inflation alone contributed nearly 3 points to the overall inflation rate. Annual owners’ equivalent rent in US, which peaked at 7.4% in 2023, demonstrates how homeownership costs drive broader housing market pressures even for renters and new homebuyers.
Annual Core Goods and Services Inflation in the US for 2025
| Category | Annual Rate | Monthly Change | Key Drivers |
|---|---|---|---|
| Core CPI (ex food & energy) | 2.9% | 0.2% | Services, shelter |
| Core Services | 3.6% | 0.3% | Labor costs, demand |
| Core Goods | 0.7% | 0.2% | Supply chains, imports |
| Medical Care Services | 3.4% | 0.6% | Healthcare costs |
| Transportation Services | 3.4% | 0.2% | Maintenance, insurance |
| Recreation Services | 3.8% | 0.2% | Entertainment, travel |
Core inflation rates in US for 2025 excluding food and energy remained at 2.9% annually, demonstrating stability in underlying price pressures across goods and services. Core services inflation at 3.6% continues to reflect labor market strength and persistent demand for services, while core goods inflation remains moderate at 0.7% annually. This divergence between goods and services inflation illustrates the ongoing structural changes in the US economy.
Medical care inflation in US 2025 accelerated to 3.4% annually, with medical care services increasing 0.6% in June alone. Healthcare cost increases affect both consumers and employers, contributing to overall cost-of-living pressures and highlighting ongoing challenges in the healthcare sector. Transportation services inflation at 3.4% reflects higher costs for vehicle maintenance, motor vehicle insurance, and related services that impact household budgets significantly.
Annual Consumer Impact and Economic Outlook for US Inflation 2025
| Income Group | Inflation Impact | Key Challenges | Mitigation Factors |
|---|---|---|---|
| Low Income | Higher relative impact | Food, energy, housing | Government assistance |
| Middle Income | Moderate impact | Housing, services | Wage growth |
| High Income | Lower relative impact | Investment costs | Asset appreciation |
| Retirees | Fixed income pressure | Healthcare, utilities | COLA adjustments |
| Urban Consumers | Services inflation | Housing, transportation | Job opportunities |
| Rural Consumers | Energy, food costs | Transportation, goods | Lower housing costs |
The annual consumer impact of inflation in US 2025 varies significantly across different demographic and income groups based on yearly spending patterns. Lower-income households face disproportionate pressure from annual food price increases of 3.0% and energy cost fluctuations, which represent larger portions of their budgets. The yearly food inflation in US 2025 particularly affects families with limited discretionary income, while the annual 8.3% decline in gasoline prices provides substantial relief for transportation costs throughout the year.
Annual real wage growth in US 2025 has been challenged by persistent inflation, with average hourly earnings increasing 3.6% annually while yearly inflation reached 2.7%. This suggests that workers are maintaining purchasing power on an annual basis, though the margin has narrowed compared to previous years. The Federal Reserve’s monetary policy continues to balance employment objectives with price stability, seeking to achieve sustainable economic growth while managing yearly inflationary pressures in US 2025. Looking ahead, annual inflation expectations for US remain anchored near the Federal Reserve’s 2% target, though housing and services sector pressures suggest continued challenges in achieving sustained price stability.
Consumer Impact by Year in the US – Last 10 Years (2015-2025)
| Year | Real Wage Growth | Consumer Confidence | Purchasing Power Change | Low-Income Impact | Senior Impact |
|---|---|---|---|---|---|
| 2025 | +0.9% | Stable | Modest improvement | Food pressure | Healthcare costs |
| 2024 | +0.7% | Recovering | Slight improvement | Housing stress | Energy bills |
| 2023 | -0.9% | Declining | Purchasing power loss | Severe impact | Fixed income pressure |
| 2022 | -2.4% | Very low | Major purchasing power loss | Crisis levels | Extreme hardship |
| 2021 | +0.3% | Mixed | Minimal improvement | Moderate impact | Healthcare inflation |
| 2020 | +4.8% | Volatile | Deflationary benefits | Unemployment crisis | Pandemic costs |
| 2019 | +1.7% | High | Good purchasing power | Stable conditions | Manageable costs |
| 2018 | +0.6% | High | Modest improvement | Gradual improvement | Healthcare pressure |
| 2017 | +0.8% | Rising | Slight improvement | Continued recovery | Stable conditions |
| 2016 | +1.7% | Moderate | Real income gains | Recovery signs | Low inflation benefits |
| 2015 | +2.4% | Improving | Strong purchasing power | Significant relief | Energy savings |
Consumer impact by year in the US over the last decade demonstrates the severe challenges faced by American households during the 2021-2023 inflation surge. Annual real wage growth turned negative during 2022 and 2023, marking the first sustained period of declining purchasing power since the 1970s. Lower-income households experienced crisis-level impacts during 2022, with food and energy costs consuming disproportionate shares of household budgets, while seniors on fixed incomes faced extreme hardship from healthcare and energy cost increases.
Decade-long consumer trends in US show remarkable resilience and recovery patterns, with 2015 representing a period of strong consumer benefits from low inflation and energy cost declines. The yearly purchasing power changes in US demonstrate how inflation directly affects living standards, with 2025 showing modest improvement as real wage growth returns to positive territory. Annual consumer confidence patterns closely track inflation cycles, reaching very low levels during 2022 peak inflation and gradually recovering as yearly inflation rates moderate. These consumer impact trends by year in US illustrate the direct relationship between inflation rates and household economic wellbeing across different demographic groups.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
