Here's a chart summarizing historical U.S. inflation rates by period:
|
Year |
Inflation Rate (%) |
|---|---|
|
2025 |
2.31 (April) |
|
2024 |
2.95 (Annual Avg) |
|
2023 |
4.12 (Annual Avg) |
|
2022 |
8.01 (Annual Avg) |
|
2021 |
4.70 (Annual Avg) |
|
2020 |
1.24 (Annual Avg) |
|
2019 |
1.81 (Annual Avg) |
|
2018 |
2.44 (Annual Avg) |
|
2017 |
2.13 (Annual Avg) |
These figures are based on the Consumer Price Index (CPI) and reflect the annual inflation rates.
WHAT CAUSES INFLATION
Inflation happens when prices go up over time, making things more expensive. Imagine you go to the grocery store and notice that the same carton of eggs costs more than it did last year—that’s inflation in action. It can be caused by a few things:
- Too much demand, not enough supply: If everyone suddenly wants a product, but there aren’t enough to go around, businesses raise prices. Think of concert tickets—if demand is high, prices skyrocket.
- Rising costs for businesses: If companies have to pay more for wages, materials, or transportation, they often pass those costs onto consumers. For example, if gas prices go up, delivery costs rise, and stores may charge more for products.
- More money in the economy: If there’s too much money circulating, people spend more, increasing demand and pushing prices higher.
Inflation isn’t always bad—some increase in prices is normal. But when it rises too fast, it can make everyday essentials harder to afford. Governments and central banks try to control inflation by adjusting interest rates and managing the money supply.