US Inflation Rate & Consumer Prices Index (CPI)
The inflation rate measures how quickly consumer prices rise over time. Here you will find the latest CPI reading, historical inflation development and how it compares to the Fed's 2 % target.
Latest Inflation Readings
| Indicator | Value (YoY) | Change MoM |
|---|---|---|
| Headline CPI | 2.8 % | −0.1 pp |
| Core CPI | 3.1 % | −0.1 pp |
| PCE | 2.5 % | −0.1 pp |
| Fed target | 2.0 % | Long-run |
What Is the Consumer Price Index?
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of goods and services. It is the most widely cited measure of inflation in the United States.
Headline vs. Core CPI
Headline CPI includes all items. Core CPI strips out volatile food and energy prices — policymakers watch core inflation closely because it signals the persistent component of inflation rate changes.
Why PCE Matters
The Federal Reserve formally targets the PCE price index, not CPI. PCE uses a different basket and chained methodology, so it usually runs a little below CPI. See also our recession predictor page for how inflation interacts with the yield curve, or check the labour market for wage-growth feedback effects. A short note on data sourcing is available on the About page.