US Historical Inflation Rate by Year (1990–2024)
US annual inflation rate (year-over-year change in the Consumer Price Index for All Urban Consumers, CPI-U) from 1990 to 2024. Source: U.S. Bureau of Labor Statistics. Free to use with attribution (CC BY 4.0).
Average rate (1990–2024)
2.7%
Cumulative inflation
153%
Highest year (2022)
8.0%
Lowest year (2009)
-0.4%
$100 in 1990 costs today
$252.68
153% total price rise
$100 today, in 1990 dollars
$39.58
purchasing power lost
Years above Fed 2% target
25 of 35
1 year of deflation
Annual Inflation Rate by Year
Year-over-year change in CPI-U (annual average). The running column shows the cost of goods that were $100 in 1990.
| Year | Inflation Rate | Direction |
|---|---|---|
| 1990 | 5.4% | Rising |
| 1991 | 4.2% | Rising |
| 1992 | 3.0% | Rising |
| 1993 | 3.0% | Rising |
| 1994 | 2.6% | Rising |
| 1995 | 2.8% | Rising |
| 1996 | 2.9% | Rising |
| 1997 | 2.3% | Rising |
| 1998 | 1.6% | Rising |
| 1999 | 2.2% | Rising |
| 2000 | 3.4% | Rising |
| 2001 | 2.8% | Rising |
| 2002 | 1.6% | Rising |
| 2003 | 2.3% | Rising |
| 2004 | 2.7% | Rising |
| 2005 | 3.4% | Rising |
| 2006 | 3.2% | Rising |
| 2007 | 2.9% | Rising |
| 2008 | 3.8% | Rising |
| 2009 | -0.4% | Falling |
| 2010 | 1.6% | Rising |
| 2011 | 3.2% | Rising |
| 2012 | 2.1% | Rising |
| 2013 | 1.5% | Rising |
| 2014 | 1.6% | Rising |
| 2015 | 0.1% | Rising |
| 2016 | 1.3% | Rising |
| 2017 | 2.1% | Rising |
| 2018 | 2.4% | Rising |
| 2019 | 1.8% | Rising |
| 2020 | 1.2% | Rising |
| 2021 | 4.7% | Rising |
| 2022 | 8.0% | Rising |
| 2023 | 4.1% | Rising |
| 2024 | 2.9% | Rising |
| Summary | 2.7% avg/yr | 153% total |
Key observations
- The 2022 spike was a generational outlier. Inflation hit 8.0% in 2022 — the highest in roughly 40 years — after a long stretch of low, stable prices. The surge came from pandemic supply-chain disruption, stimulus-driven demand, and an energy shock, then cooled to 2.9% by 2024 as the Federal Reserve raised interest rates sharply.
- Deflation is rare but real. Prices actually fell in 2009 (-0.4%) during the financial crisis — the only year of deflation in this period. Falling prices sound good but usually signal a weak economy, and central banks treat sustained deflation as a serious danger.
- The dollar has lost more than half its value. Cumulative inflation of 153% since 1990 means $100 then buys only about $39.58 worth of goods today. Even "low" inflation compounds relentlessly — this is why money left in cash quietly shrinks in real terms year after year.
- 2% is the target, not the average experience. The Federal Reserve aims for 2% inflation, and the long-run geometric average here (2.7%) is close to it — but prices ran above 2% in 25 of 35 years. Plan for the average, not the best case.
- Real returns are what count. A savings account paying 1% while inflation runs 3% loses 2% of purchasing power a year. To grow wealth you need a return that beats inflation — the "real" return — which is why long-term investors favour assets like equities that have historically outpaced rising prices.
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