Current Inflation Rate (CPI)
What is the Inflation Rate (CPI)?
The Consumer Price Index (CPI) measures the average change in prices paid by consumers for goods and services. The Federal Reserve targets a 2% annual inflation rate.
Frequently Asked Questions
What is the current US inflation rate?
The current U.S. inflation rate is measured by the year-over-year change in the Consumer Price Index (CPI), published monthly by the Bureau of Labor Statistics.
How does inflation affect me?
Inflation reduces your purchasing power. When inflation is 3%, something that costs $100 today will cost $103 next year. It affects groceries, gas, rent, and everything you buy.
What is the Fed's inflation target?
The Federal Reserve targets 2% annual inflation as the ideal rate for a healthy economy. Above 2% erodes savings; below 2% risks deflation.