United States Inflation Rate1914-2021 Data | 2022-2023 Forecast | Calendar

Annual inflation rate in the US accelerated to 5% in May of 2021 from 4.2% in April and above market forecasts of 4.7%. It is the highest reading since August of 2008 amid low base effects from last year when the coronavirus pandemic hit the economy hard, rising consumer demand as the economy reopens, soaring commodity prices, supply constraints and higher wages as companies grapple with a labour shortage. Biggest price increases were recorded for gasoline (56.2%), used cars and trucks (29.7%), utility gas service (13.5%), transportation services (11.2%) and apparel (5.6%). Shelter costs were up 2.2% and food also went up 2.2%.

Annual inflation rate in the US is expected at 4.7% in May which would be a new high since September of 2008. Inflation has been on a rise since February amid low base effects from last year when the coronavirus pandemic hit the economy hard, rising consumer demand as the economy reopens, soaring commodity prices, supply constraints and higher wages as companies grapple with a labour shortage. The inflation is seen hitting the peak in Q2 and then to start slowing in the second half of 2022. The Fed has been reiterating that price pressures are transitory and that higher inflation could be tolerated for some time. Still, investors worry that persistent inflation would force the central bank to start reducing its bond purchases early although a rate hike is not expected before 2023. The annual inflation rate in the US soared to 4.2% in April of 2021 from 2.6% in March and well above market forecasts of 3.6%.

The annual inflation rate in the US soared to 4.2% in April of 2021 from 2.6% in March and well above market forecasts of 3.6%. It is the highest reading since September of 2008, amid a surge in demand as the economy reopens, soaring commodity prices, supply constraints. There is also a base effect weighing as the coronavirus pandemic dented economic activity bringing the inflation rate to 0.3% in April 2020. The biggest increases were recorded for gasoline (49.6% vs 22.5% in March), fuel oil (37.3% vs 20.2%) and used cars and trucks (21% vs 9.4%). Inflation also accelerated for shelter (2.1% vs 1.7%) and new vehicles (2% vs 1.5%) and rebounded for apparel (1.9% vs -2.5%), but slowed for medical care services (2.2% vs 2.7%) and food (2.4% vs 3.5%). Meanwhile, compared to March, prices rose 0.8%, the most since 2009 while monthly core consumer inflation increased 0.9%, the most since 1996.

The annual inflation rate in the US jumped to 2.6% in March of 2021 from 1.7% in February, slightly above market forecasts of 2.5%. It is the highest reading since August of 2018 with main upward pressure coming from energy (13.2% vs 3.7% in February), namely gasoline (22.5% vs 1.6%), electricity (2.5% vs 2.3%) and utility gas service (9.8% vs 6.7%). Prices also accelerated for used cars and trucks (9.4% vs 9.3%), shelter (1.7% vs 1.5%) and new vehicles (1.5% vs 1.2%) while inflation slowed for medical care services (2.7% vs 3%) and food (3.5% vs 3.6%). Also, cost of apparel continued to fall (-2.5% vs -3.6%). The effects of the coronavirus pandemic are weighing on prices since in March 2020 many businesses closed and lockdowns were imposed, denting economic activity Also, a jump in commodities and material costs, coupled with supply constraints, are pushing producer prices up and some companies are passing those costs to clients.