Wealthy PotCurrent US Inflation Rate: 3.4% (August 2026 CPI Report)
US consumer prices were 3.4% higher in August 2026 than a year earlier, according to the Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) report released on September 11, 2026. Core inflation, which leaves out food and energy, was 2.4%. The index for gasoline rose 3.9% in August, accounting for over one third of the monthly all items increase. The next reading, for September 2026, comes out on October 14, 2026.
See what any amount from 1913 to today is worth with our inflation calculator.
What is driving inflation right now
Energy prices are the biggest mover: up 16.3% over 12 months, with gasoline up 27.4%. Food prices rose 2.7% and shelter, the largest single cost in the index, 3.0%. Excluding food and energy, prices rose 2.4%.
| Category | Change from last month (seasonally adjusted) | Change over 12 months |
|---|---|---|
| All items | +0.4% | +3.4% |
| Food | +0.1% | +2.7% |
| Food at home | 0.0% | +2.2% |
| Food away from home | +0.3% | +3.4% |
| Energy | +2.1% | +16.3% |
| Gasoline (all types) | +3.9% | +27.4% |
| Electricity | −0.2% | +3.8% |
| Utility (piped) gas service | −1.1% | +4.4% |
| All items less food and energy (core) | +0.3% | +2.4% |
| Shelter | +0.3% | +3.0% |
| New vehicles | +0.3% | +0.6% |
| Used cars and trucks | +0.4% | −2.3% |
| Apparel | 0.0% | +3.6% |
| Medical care services | −0.2% | +2.5% |
| Transportation services | +0.5% | +2.4% |
The inflation rate over the last 10 years
Inflation rate by month, last 24 months
| Month | 12-month inflation rate |
|---|---|
| August 2026 | 3.4% |
| July 2026 | 3.4% |
| June 2026 | 3.5% |
| May 2026 | 4.2% |
| April 2026 | 3.8% |
| March 2026 | 3.3% |
| February 2026 | 2.4% |
| January 2026 | 2.4% |
| December 2025 | 2.7% |
| November 2025 | 2.7% |
| October 2025 | not available |
| September 2025 | 3.0% |
| August 2025 | 2.9% |
| July 2025 | 2.7% |
| June 2025 | 2.7% |
| May 2025 | 2.4% |
| April 2025 | 2.3% |
| March 2025 | 2.4% |
| February 2025 | 2.8% |
| January 2025 | 3.0% |
| December 2024 | 2.9% |
| November 2024 | 2.7% |
| October 2024 | 2.6% |
| September 2024 | 2.4% |
Inflation rate by year, 2000 to 2025
| Year | Inflation (annual average) |
|---|---|
| 2025 | 2.6% |
| 2024 | 2.9% |
| 2023 | 4.1% |
| 2022 | 8.0% |
| 2021 | 4.7% |
| 2020 | 1.2% |
| 2019 | 1.8% |
| 2018 | 2.4% |
| 2017 | 2.1% |
| 2016 | 1.3% |
| 2015 | 0.1% |
| 2014 | 1.6% |
| 2013 | 1.5% |
| 2012 | 2.1% |
| 2011 | 3.2% |
| 2010 | 1.6% |
| 2009 | −0.4% |
| 2008 | 3.8% |
| 2007 | 2.8% |
| 2006 | 3.2% |
| 2005 | 3.4% |
| 2004 | 2.7% |
| 2003 | 2.3% |
| 2002 | 1.6% |
| 2001 | 2.8% |
| 2000 | 3.4% |
What the CPI report is
The Consumer Price Index (CPI) is the BLS measure of the average change over time in the prices consumers pay for a representative basket of goods and services. BLS data collectors record the prices of about 80,000 items each month from stores, service businesses, rental units and doctors' offices across the country. The items are sorted into more than 200 categories in eight major groups: food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services.
BLS publishes the results once a month in the CPI news release, usually around the middle of the month at 8:30 a.m. Eastern, covering the month before. The headline numbers are the 12-month change in all items, the 12-month change in core prices, and the seasonally adjusted change from the previous month, all shown at the top of this page.
Reading the CPI index value
The CPI itself is an index, not a percentage. BLS sets the average price level of 1982 to 1984 equal to 100, so an index of 110 would mean prices 10% higher than in that base period. The latest CPI-U value is 334.980 for August 2026, which means average consumer prices are about 235% higher than in 1982-84. Inflation rates are the percentage change between two index values: our CPI inflation calculator does that for any two months since 1913.
How inflation is measured
- CPI-U is the headline rate. It tracks prices paid by urban consumers, who make up over 90% of the US population, across a basket of goods and services.
- Core CPI leaves out food and energy, whose prices swing the most from month to month. It is a better guide to the underlying trend, but it is not what households actually pay.
- CPI-W covers households of urban wage earners and clerical workers, about 30% of the population. Social Security uses it to set the annual cost-of-living adjustment.
- PCE is the Federal Reserve's preferred measure. The Fed aims for 2% inflation over the longer run on the PCE price index, which is published by the Bureau of Economic Analysis.
The 12-month rate compares a month with the same month a year earlier, before seasonal adjustment, which is the figure news reports headline. The monthly change is seasonally adjusted so that regular patterns, such as holiday price swings, do not distort it.
What it means for your money
- Savings: money only keeps its buying power if it earns more than inflation. Compare the average savings interest rate and high-yield savings accounts against today's rate.
- I bonds: their rate resets every six months with inflation; see I bonds.
- Social Security: the 2027 raise is set from third-quarter CPI-W; see the 2027 COLA.
- Investing: judge returns after inflation; see how inflation affects investment returns.
FAQ
What is the current US inflation rate?
3.4% for the 12 months ending August 2026, as measured by the Consumer Price Index for All Urban Consumers (CPI-U), before seasonal adjustment. BLS published it on September 11, 2026.
What is the Consumer Price Index (CPI)?
The CPI is the Bureau of Labor Statistics measure of the average change over time in the prices consumers pay for a representative basket of goods and services. BLS records the prices of about 80,000 items each month and publishes the results in a monthly CPI report.
What is the latest CPI index value?
334.980 for August 2026 (CPI-U, U.S. city average, not seasonally adjusted, 1982-84 = 100). That means average consumer prices are about 235% higher than in the 1982-84 base period.
What is core inflation right now?
Core inflation, which leaves out food and energy, was 2.4% over the 12 months ending August 2026, down from 2.5% for the 12 months ending the month before.
When is the next inflation report?
BLS publishes the CPI for September 2026 on October 14, 2026, at 8:30 a.m. Eastern.
What is the difference between CPI-U and CPI-W?
CPI-U covers urban consumers, over 90% of the US population, and is the headline inflation rate. CPI-W covers households of urban wage earners and clerical workers, about 30% of the population; Social Security uses it to set the annual cost-of-living adjustment.
What inflation rate does the Federal Reserve target?
The Federal Reserve aims for 2% inflation over the longer run, measured by the annual change in the price index for personal consumption expenditures (PCE), not the CPI. The two usually move together, but PCE inflation tends to run a little lower.
What was the highest inflation rate in recent history?
In the period shown on this page, the 12-month rate peaked at 9.1% in June 2022. The highest annual average after 1981 was 8.0% in 2022.
Sources
- BLS, Consumer Price Index news release for August 2026, published September 11, 2026 (USDL-26-1496).
- BLS CPI database, series CUUR0000SA0 (CPI-U, U.S. city average, all items).
- BLS, CPI frequently asked questions: CPI definition, the 80,000 monthly prices, the eight major groups, the 1982-84 = 100 base, and CPI-U and CPI-W population coverage.
- Federal Reserve: the 2% longer-run goal, measured by the PCE price index.
This page is for general information and is not financial advice. Figures are from the U.S. Bureau of Labor Statistics and are updated after each monthly CPI release; 12-month and annual rates are our calculations from BLS index values.