U.S. Inflation Rate
Latest data: August 1, 2026 · Updated automatically from official sources
The United States publishes three main measures of inflation, each built for a different purpose. The Consumer Price Index (CPI) tracks what households pay at the register, the Producer Price Index (PPI) tracks what businesses receive before goods reach store shelves, and the PCE price index — the Federal Reserve’s preferred yardstick for its 2% target — adjusts for the way consumers shift their spending when relative prices change.
Latest readings
- Headline CPI was up 3.4% year over year in August 2026, compared with 3.3% in the prior period and 2.9% a year earlier.
- Core CPI was up 2.5% year over year in August 2026, compared with 2.5% in the prior period and 3.1% a year earlier — the lowest since March 2021.
- PPI Final Demand was up 5.4% year over year in August 2026, compared with 4.8% in the prior period and 2.7% a year earlier.
- Core PCE was up 3.3% year over year in July 2026, compared with 3.3% in the prior period and 2.9% a year earlier.
Headline vs. core CPI inflation
Producer vs. consumer prices
The Fed’s preferred gauge
Inflation scorecard
| Measure | Latest month | Latest | 3 months earlier | A year earlier | vs. 2% target |
|---|---|---|---|---|---|
| CPI, headline | Aug 2026 | 3.4% | 4.2% | 2.9% | +1.4 pp |
| CPI, core | Aug 2026 | 2.5% | 2.8% | 3.1% | +0.5 pp |
| PCE, headline | Jul 2026 | 3.7% | 3.8% | 2.6% | +1.7 pp |
| PCE, core | Jul 2026 | 3.3% | 3.3% | 2.9% | +1.3 pp |
| PPI, final demand | Aug 2026 | 5.4% | 5.9% | 2.7% | +3.4 pp |
Recent readings
| Period | Headline CPI inflation (YoY) | Change |
|---|---|---|
| August 2026 | 3.4% | +0.05 pp |
| July 2026 | 3.3% | -0.16 pp |
| June 2026 | 3.5% | -0.71 pp |
| May 2026 | 4.2% | +0.39 pp |
| April 2026 | 3.8% | +0.49 pp |
| March 2026 | 3.3% | +0.86 pp |
| February 2026 | 2.4% | +0.04 pp |
| January 2026 | 2.4% | -0.26 pp |
| December 2025 | 2.7% | -0.05 pp |
| November 2025 | 2.7% | -0.32 pp |
| September 2025 | 3.0% | +0.08 pp |
| August 2025 | 2.9% | +0.20 pp |
| July 2025 | 2.7% | — |
Key statistics
| Indicator | Latest | Year ago | 5-yr avg | Long-run avg | Record high | Record low | Data since |
|---|---|---|---|---|---|---|---|
| Headline CPI (YoY) | 3.4% | 2.9% | 4.5% | 3.5% | 14.6% (Mar 1980) | -3.0% (Aug 1949) | 1948 |
| Core CPI (YoY) | 2.5% | 3.1% | 4.1% | 3.7% | 13.6% (Jun 1980) | 0.6% (Oct 2010) | 1958 |
| PPI Final Demand (YoY) | 5.4% | 2.7% | 4.7% | 2.7% | 11.6% (Mar 2022) | -1.5% (Oct 2015) | 2010 |
| Core PCE (YoY) | 3.3% | 2.9% | 3.8% | 3.2% | 10.2% (Feb 1975) | 0.6% (Jul 2009) | 1960 |
Which inflation number should you watch?
When news reports quote “the inflation rate,” they almost always mean the year-over-year change in headline CPI. That is the number that drives Social Security cost-of-living adjustments, inflation-indexed Treasury bonds (TIPS) and many wage contracts, so it matters directly to household budgets.
The Federal Reserve, however, sets policy with an eye on core PCE inflation. PCE covers a broader range of spending (including what employers and government programs pay for health care on households’ behalf) and its weights update as people substitute between products. Stripping out food and energy — the “core” measure — removes the most volatile components and gives a cleaner read on the underlying trend.
PPI is best thought of as an early-warning signal. Producer prices capture cost pressures at the factory gate and in wholesale trade, and large moves there often feed into consumer prices with a lag of a few months.
Why the measures disagree
CPI usually runs a few tenths of a percentage point above PCE. The gap comes from three sources: weights (shelter carries roughly a third of the CPI basket but a much smaller share of PCE), scope (PCE includes spending made on behalf of households), and formula (PCE’s chain-weighted formula captures substitution, while CPI’s basket changes only periodically). When housing costs are rising quickly, the CPI–PCE gap tends to widen.
How econHQ calculates these figures
The agencies publish CPI, PPI and PCE as index levels. econHQ converts each index to a year-over-year percent change by comparing the latest month with the same month a year earlier, which is the standard way inflation rates are reported. Seasonally adjusted series are used wherever the source publishes them. All data refresh automatically from the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA) through the Federal Reserve Bank of St. Louis’s FRED database.
Frequently asked questions
What is the current U.S. inflation rate?
The headline CPI figure in the “Latest readings” summary above is the most recent official year-over-year inflation rate published by the Bureau of Labor Statistics. It updates automatically when BLS releases a new month of data, usually around the middle of the following month.
What inflation rate does the Federal Reserve target?
The Fed targets 2% inflation over the longer run, measured by the annual change in the PCE price index. Policymakers pay particular attention to core PCE, which excludes food and energy.
Is core or headline inflation more important?
Both matter for different reasons. Headline inflation is what households actually experience; core inflation is a better guide to where inflation is heading because it filters out swings in food and fuel prices.
Related data
Data are retrieved automatically from the original statistical agencies (via the Federal Reserve Bank of St. Louis FRED database) and may be revised by the source. Year-over-year changes are calculated by econHQ. See About & methodology for details.