Consumer price index

The Consumer Price Index (CPI) in the United States is estimated to reach 322.4 in 2025, marking a 2.8% increase. This growth follows a 2.9% rise in 2024, mainly due to high shelter costs despite some easing of inflation in other areas and Federal Reserve rate cuts. Continued high housing expenses, elevated grocery prices, and recent tariffs have pressured prices upward, keeping growth above the Federal Reserve's 2.0% target and straining household budgets.

From 2020 to 2025, the CPI increased at an annualized rate of 4.5%. In 2021, it rose sharply by 4.7% due to disrupted global supply chains from the COVID-19 pandemic, fiscal and monetary support, and supply shocks from extreme weather. Price spikes affected autos and energy products as component shortages and transportation bottlenecks persisted. In 2022, the CPI surged 8.0%, driven by global supply chain pressures, wage growth, and the Russia-Ukraine conflict, which elevated oil and food prices. Although the Federal Reserve raised interest rates to curb inflation, these measures gradually impacted price growth.

In 2023, the CPI continued rising by 4.1%, with sustained high gasoline, housing, and grocery costs. Tight monetary policy from the Federal Reserve failed to keep inflation within target levels. By 2024, pressures eased slightly, yet the index climbed 2.9%, led by shelter costs and tariff effects. Labor market strength and moderate wage gains maintained consumer demand, counteracting some rate increases. Overall, from 2020–2025, the CPI was influenced by energy and housing costs, wage growth, supply chain recovery, and national monetary policy shifts. International conflicts affecting commodity prices and shifting supply chains also significantly shaped inflation during this time.

Over these five years, the CPI saw strong growth due to supply-side disruptions, tight labor markets, rising energy costs, commodity price conflicts, and Federal Reserve policy adjustments. Inflation remained a key factor influencing business costs, consumer purchasing power, and economic policymaking.