Chart: Inflation Rates & Core Inflation Rates
Inflation is an economic phenomenon that refers to a general increase in the prices of goods and services over time. It is a crucial indicator of the economy's health and is closely monitored by policymakers, businesses, and consumers alike. The chart displayed beklow shows the annual inflation rates and core inflation rates in the United States. The blue line represents the rate at which prices for goods and services have climbed over time, while the red line excludes food and energy items from the calculation.
In the Consumer Price Index (CPI), which measures the average change in prices paid by urban consumers, the rate of inflation is described as the "all items" index, while the rate of core inflation, or underlying inflation, is listed as the "all items less food and energy" index.
The Inflation Calculator provided by following the link offers precise outcomes by presenting the accumulated inflation rate between specific months and years, instead of computing the overall inflation rate for calendar years (or up until the latest month for 2023), which is done by the more widely used calculator above.
Inflation and Prices
Inflation can impact the prices of various goods and services, including groceries and energy. When the overall price level of goods and services in an economy increases, it can lead to an increase in the prices of grocery items such as food, beverages, and household supplies. Similarly, inflation can also affect energy prices, including the cost of electricity, natural gas, and gasoline. To better understand the impact of inflation on these categories, follow the links below.
Why is news and rates for I bonds discussed on a site about inflation? The performance of these bonds is closely linked to the rate of inflation. In fact, Series I savings bonds are a type of U.S. government bond that is designed to protect against inflation. These bonds earn interest based on a combination of a fixed rate and a variable rate that is tied to the rate of inflation, as measured by the Consumer Price Index for Urban Consumers (CPI-U).
Items Adjusted for Inflation
Inflation-adjusted prices for everyday commodities such as gasoline, electricity, eggs, milk, coffee, and bacon have become a major concern for many households in recent times. The increasing cost of these essential goods has put a strain on budgets and impacted the purchasing power of consumers. To better understand the impact of inflation on the prices of these everyday goods, the links below provide information on prices adjusted for inflation.
Gasoline Inflation
In March, the average price for a gallon of gasoline was $3.660, up 3% from February’s price of $3.622.
Food Inflation
Food prices increased 8.5% in the 12 months ended March after posting an annual increase of 9.5% in February.
Health Care Inflation
Health care prices increased by 1.5% in the 12 months ended March 2023, after a previous increase of 2.3%.
College Inflation
Prices for college tuition and fees rose 2.3% in the 12 months ending February, matching the three prior increases.
Airfare Inflation
Prices for airline tickets increased by 17.7% over the year ending in March, following a 26.5% rise previously.