US Inflation Rate
The percentage increase in the general price level over a year, primarily measured by CPI at 2.9% for August 2025.
What is US Inflation Rate?
Calculated via CPI-U for 93% of the population, the rate reflects price shifts in urban areas, with August 2025 at 2.9% year-over-year, influenced by 3.6% food, 4.0% services, and -1.2% energy changes. Alternatively, PCE measures it at 2.7%, preferred by Fed for broader coverage including rural areas and flexible weights. Monthly, CPI rose 0.38% from July to August, with core at 0.26%.
Historical peaks include 9.1% CPI in June 2022, easing to 2.9% amid Fed hikes totaling 525 basis points from 2022-2023. Nowcasting estimates October 2025 monthly CPI at 0.15%, core 0.25%, projecting annual around 2.8% if trends hold. Impacts include COLA adjustments; Social Security rose 2.5% for 2025 based on 2.6% Q3 CPI-W.
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