25 Shocking U.S. Inflation Statistics [2023]: Is Inflation On The Rise?

Research Summary. Since the start of the COVID-19 Pandemic, there’s been a lot of concern about rising inflation. The truth is, Americans are starting to feel the stress from all of the global historical events that have been happening, with no end in sight.

How bad are current inflation rates? To find out more, we’ve gathered all of the essential facts about inflation in 2022, which shows that:

• The overall consumer price index (CPI) increased by 7.7% over the past 12 months (October 2021- October 2022).

• As of October 2022, the CORE inflation rate in the United States increased by 6.28% in a 12-month period.

For further analysis, we broke down the data in the following ways:
Trends and Projections | Producer Price Index | Global

U.S. Inflation Statistics by CPI and Selected Categories

While overall inflation has increased, certain industries have seen far more impactful inflation than others. To understand just how much inflation is impacting these various industries, here are the facts:

• The Energy category has seen the highest 12-month CPI increase, at 17.6%.

  While energy prices had already been creeping up from their 2020 lows, the Ukraine Crisis has caused energy prices around the world to skyrocket. Knowing that, we can expect to continue seeing highly inflated natural gas and oil prices.

  

• The Food category has seen a troubling 12-month CPI of 10.9%.

  Now surpassing overall inflation, food prices have been increasing for some time noticeable increases. The worst increases have been seen in food-at-home prices, which have had a 12-month CPI of 8.6% and a one-month percent change of 1.4% in February. On the other hand, food away from home has seen a 12-month CPI of 6.4%.

• The food product that’s seen the highest 12-month price increases is Eggs, which are now 25.6% more expensive than they were in 2021.

  In February 2021, eggs cost an average of $1.60. However, that price has increased to $2.01 a year later. Other major food types that have seen price increases within the past year include Beef (8.9%), Milk (15.1%), Oranges (9.8%), Chicken (3.2%), and Bread (2.6%).

  

• Between February 2022 and October 2022, the 12-month CPI of used cars dropped from 41.2% to only 2%.

  However, the cost of used cars is still much higher than 2021, as a used car worth $15,000 in February 2021 would be worth $21,150 in February 2022. Prices like that have made it increasingly difficult for Americans to affordable used cars.

  And inflation is affecting new cars as well, even if not as strongly. Over a 12-month period, prices of new cars have increased by 12.4%.

• The price of all items except for food and energy has increased 6.3% over 12 months.

  This includes categories like Apparel (4.1%), New Vehicles (8.4%), Used Cars and Trucks (2.0%), Shelter (6.9%), Medical Care services (5.4%), and Transportation services (15.2%).

• From February 2021 to February 2022, the inflation rate increased from 1.7% to 7.9%.

  The increase in inflation we’ve seen within the past year has been historic, as the inflation rate has grown over 3.5x larger in only 12 months. No doubt, this will have extremely visible consequences on everyday products and services.

  

• The 12-month Rent inflation rate has increased from 1.46% to 4.74%.

  While not as drastic as the overall inflation rate increases, the rate at which the price of rent increases has more than doubled in the past year. No doubt, renters all over the country are feeling the sting of rising prices.

• The 12-month Services inflation rate has increased from 1.36% to 4.79%.

  Another category of the American economy that has seen double the inflation rate within only a year and it’s a big one. Overall, Services inflation accounts for 57% of a consumer price index, making it a good metric for judging overall inflation rates.

• From February 2021 to February 2022, the CORE U.S. inflation rate increased from 1.3% to 6.4%.

  In particular, from September 2021 onward, inflation rates increased by 0.03-0.06% every single month. In less than six months, inflation rose from 4% to 6.4%.

• Shelter is the most important individual category that contributes to the CPI, making up 32.39% of it.

  Other important categories include Food (13.99%), Transportation commodities (7.98%), Energy (7.54%), and Medical care services (6.99%).

U.S. Inflation Trends and Projections

It’s clear that inflation is headed for historic highs, but many are wondering whether current rates will continue to rise or start to stabilize. Well, according to our research:

• The current inflation rate is the highest it’s been since 1980 when inflation reached 14.4%.

  While current inflation is only a little over half of what it was in 1980, that doesn’t mean current numbers aren’t historic. Overall, inflation hasn’t been as high as it currently is since 1982, exactly 40 years ago.

• Since 2016, the average annual inflation rate has increased by 1.25% to 2.45% each year.

  The year that saw the highest year-over-year increase was actually 2018 when the inflation rate increased by 2.44%. Meanwhile, 2020 saw the lowest increase, at only 1.25%.

• Year-over-year inflation increases through 2026 are expected to fluctuate between 2.25% and 2.5%.

  Overall, that would mean that prices would be around 9.5% more inflated than they are today. Therefore, even if inflation doesn’t skyrocket, it will continue to increase.

  

U.S. Inflation Statistics by PPI (Producer Price Index)

The PPI also affects the price of products and services. After all, producers have to price their goods based on how much it costs to create them. Here are some interesting facts about the current state of the U.S. PPI:

• The 12-month increase in total PPI between 2021-2022 was 10%.

  Total PPI peaked in January of 2022 at a 1.2% month-over-month change. After experiencing a dip of -1.3% in April of 2020, the total PPI for final demand has been steadily rising month-over-month. As of February 2022, PPI was recorded at 0.8%.

  

• Over a 12-month period, the PPI for the Energy category increased by 33.8%.

  In fact, every major category has seen significant PPI increases; Transportation and warehousing (16.6%), Goods (14.4%), Trade (14.4%), Foods (13.7%), and Services (7.8%).

• As of February 2022, Energy has the highest one-month PPI, at 8.2%.

  Other categories that had high PPI include Goods (2.4%), Foods (1.9%), and Transportation and warehousing (1.9%). On the other hand, the only category with no PPI increase in February was Services.

Global Inflation Statistics

While the U.S. is currently being hit hard by inflation, that doesn’t mean other countries are immune. In fact, global events like the Ukraine Crisis are likely to put a massive strain on Europe’s economy. With that in mind, here are some interesting insights into global inflation rates, according to our research:

• The price of all U.S. Exports has increased by 16.6% over a 12-month period.

  

• Likewise, the price of all U.S. Imports has increased by 10.9% within that same period.

• Zimbabwe has the highest average annual CPI inflation, at 577.2%.

• Comoros has the lowest average annual CPI inflation, at -4.3%.

• The United States has an average annual CPI inflation of 1.23%, which is slightly lower than the world’s average of 1.89%.

• Out of all OECD countries, Turkey currently has the highest annual inflation growth rate of 61.1%.

• Meanwhile, Japan has the lowest annual inflation growth rate of any OECD country, at 0.9%.

Inflation Statistics FAQ

1. What goes into the consumer price index?

   There are 18 main categories that go into the consumer price index (CPI). These categories are weighted differently to accurately reflect how much they individually affect the CPI. Here is a list of the top ten categories and their weight toward the CPI:

   • Shelter (32.39%)

   • Food (13.99%)

   • Transportation commodities (7.98%)

   • Energy (7.54%)

   • Medical care services (6.99%)

   • Education and communication services (6.01%)

   • Transportation services (5.05%)

   • Household furnishings and supplies (3.77%)

   • Recreation services (3.67%)

   • Apparel (2.67%)

   

2. What is the current inflation rate?

   The current CORE inflation rate in the United States is 6.28%. That represents the overall 12-month increase between 2021 and 2022. However, the CPI has increased by 7.7%, and various other categories are experiencing even greater increases than that.

   For instance, the Energy category has seen a 12-month CPI increase of 17.6%.

3. What is the average inflation rate each year?

   The average annual U.S. inflation rate is 1.23%. However, this number can fluctuate greatly depending on national and global events. For instance, the COVID-19 pandemic and the Ukraine crisis have both had profound impacts on U.S. inflation.

   Overall, since 2016, the average annual inflation rate has increased by 1.25% to 2.45% each year. The year that saw the highest year-over-year increase was actually 2018 when the inflation rate increased by 2.44%. Meanwhile, 2020 saw the lowest increase in recent years, at only 1.25%.

4. Is inflation bad for the economy?

   Yes and no. Inflation affects employment and other aspects of the economy, meaning that a stable rate is better than anything else. The federal government tries to keep inflation between 1-2% to ensure maximum employment and growth.

   This is because deflation is incredibly harmful to the economy. Decreasing prices might seem like a good thing on the surface, but prices fell 10% during the worldwide Great Depression in the 1930s; workers had less to spend and lost their jobs on mass.

   On the other hand, walking inflation is also dangerous. This is when prices rise between 3%-10% per year, and that level of inflation can cause workers to be priced out of markets or at least spend too much of their hard-earned paycheck on goods and services.

5. What year had the highest inflation rate?

   The highest U.S. inflation rate ever recorded was 29.78% in 1778. As a new country, it experienced rapid and intense changes that affected the economy and everyone who participated in it.

   Likewise, since the U.S. introduced the CPI, the highest inflation rate recorded was 19.66% in 1917. This spike was caused by WWI.

   Finally, the highest inflation rate seen within the past 50 years occurred in 1980, when inflation reached 14.6%. This event occurred just before Ronald Reagan took office in 1981.

6. Who benefits most from inflation?

   There are several entities and types of consumers who benefit from increased inflation. These include:

   • Those with Debts. As prices increase, those with large debts and repayment plans will find it easier to pay back those debts.

   • Governments with High Debts. Similar to how inflation affects debt on an individual level, governments with a lot of debt also stand to benefit from rising prices.

   • Owners of Land and Physical Assets. Because inflation increases prices, those who own a house or a car will benefit from those price increases. For example, if someone bought a home worth $150,000, they make money when inflation drives that price up to $250,000 twenty years later.

   • Firms that Cut Real Wages. When inflation increases, real wages decrease. This means that most companies have to raise their wages so workers can still afford their expenses. However, firms that don’t need to raise wages benefit from high inflation.

7. Who is hurt the most from inflation?

   There are also several entities and types of consumers who can be hurt by increased inflation. These include:

   • Savers. If you’re the type that likes to store money in your mattress for a later date, inflation can do a lot of damage. That’s because the amount of money saved doesn’t change, even though prices for everyday goods and services are. That reduces the buying power of said savings.

   • Those on Fixed Incomes. Retirees and people on disability will suffer from having their buying power decreased until their fixed income is increased, but that doesn’t always happen. For the most part, fixed incomes can be easily made inadequate by inflation.

   • Borrowers on variable rates. Borrowers without fixed rates can be harmed by inflation because they might find themselves paying far more over time.

   • The Economy. It’s no secret that walking inflation can damage the economy. That’s because as buying power decreases, the things needed to create balance don’t always occur. For instance, while inflation has been steadily increasing over time, the wages workers are paid haven’t kept up.

8. Is inflation good for stocks?

   Yes and no. While inflation can increase the overall worth of a value stock, that doesn’t mean positive growth is guaranteed. On the contrary, inflation often causes stocks to become more volatile and riskier.

   In general, that’s because inflation affects the purchasing power of a currency, and when consumers have less purchasing power, stocks are negatively affected.

9. Has America ever had hyperinflation?

   No, the U.S. has never experienced hyperinflation. The highest inflation rate ever experienced by the U.S. was 29.78% in 1778, and hyperinflation requires a rate of 50% or more.

   Historical examples of hyperinflation include when Germany began printing large sums of money in the 1920s. By 1923, the inflation rate reached an unfathomable 29,500%. At such a rate, the country’s currency essentially became useless.

   A more recent example of hyperinflation is the country of Venezuela, which reached a peak inflation rate of 130,060% in 2018. Further, even since 2016, the overall rate hasn’t fallen below 200%, wracking up a whopping 53,798,500% in increased inflation over the course of five years.

Conclusion

There’s no hiding the fact that inflation rates are on the rise in the U.S., with CORE inflation increasing by 6.28% and the CPI increasing by 7.7% in a 12-month period. Overall, everything from the price of energy to food to vehicles is on the rise.

However, while inflation will likely continue to increase, the United States is far from cascading into a state of hyperinflation. Instead, consumers and businesses will simply have to adapt to a steadily increasing inflation rate.

Sources:

1. BLS. “Consumer Price Index Summary.” Accessed on April 7th, 2022.

2. Trading Economics. “United States Core Inflation Rate.” Accessed on April 7th, 2022.

3. BLS. “Consumer Price Index.” Accessed on April 8th, 2022.

4. Pew Research Center. “As inflation soars, a look at what’s inside the Consumer Price Index.” Accessed on April 8th, 2022.

5. Statista. “Projected annual inflation rate in the United States from 2010 to 2026.” Accessed on April 8th, 2022.

6. BLS. “Producer Price Indexes.” Accessed on April 8th, 2022.

7. BLS. “Import/Export Price Indexes.” Accessed on April 8th, 2022.

8. The World Bank. “Inflation, consumer prices (annual %).” Accessed on April 8th, 2022.

9. OECD Data. “Inflation (CPI).” Accessed on April 8th, 2022.

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.