The annual inflation rate in the United States is currently 3% for the 12 months ending in January 2025. This figure, released by the U.S. Labor Department on February 12, 2025, represents a slight increase from the 2.9% rate reported for the previous period. Economists and the public are keenly watching these figures as they reflect the changing cost of living and the overall health of the economy.
The next update on inflation, which will cover the 12 months ending in February, is scheduled for release on March 12 at 8:30 a.m. ET. This upcoming report will provide further insights into whether the current trend of fluctuating inflation rates will continue or if a more stable pattern is emerging. Understanding these fluctuations is crucial for businesses, consumers, and policymakers alike as they make financial decisions and navigate the economic landscape.
To put the current inflation rate into perspective, it’s helpful to examine historical data. The table below provides a snapshot of annual US inflation rates for recent years. For a more comprehensive historical view, you can refer to resources detailing historical inflation rates.
Table: Annual Inflation Rates
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Ave |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 3.0 | Avail.March 12 | |||||||||||
| 2024 | 3.1 | 3.2 | 3.5 | 3.4 | 3.3 | 3.0 | 2.9 | 2.5 | 2.4 | 2.6 | 2.7 | 2.9 | 2.9 |
| 2023 | 6.4 | 6.0 | 5.0 | 4.9 | 4.0 | 3.0 | 3.2 | 3.7 | 3.7 | 3.2 | 3.1 | 3.4 | 4.1 |
| 2022 | 7.5 | 7.9 | 8.5 | 8.3 | 8.6 | 9.1 | 8.5 | 8.3 | 8.2 | 7.7 | 7.1 | 6.5 | 8.0 |
| 2021 | 1.4 | 1.7 | 2.6 | 4.2 | 5.0 | 5.4 | 5.4 | 5.3 | 5.4 | 6.2 | 6.8 | 7.0 | 4.7 |
| 2020 | 2.5 | 2.3 | 1.5 | 0.3 | 0.1 | 0.6 | 1.0 | 1.3 | 1.4 | 1.2 | 1.2 | 1.4 | 1.2 |
| 2019 | 1.6 | 1.5 | 1.9 | 2.0 | 1.8 | 1.6 | 1.8 | 1.7 | 1.7 | 1.8 | 2.1 | 2.3 | 1.8 |
| 2018 | 2.1 | 2.2 | 2.4 | 2.5 | 2.8 | 2.9 | 2.9 | 2.7 | 2.3 | 2.5 | 2.2 | 1.9 | 2.4 |
| 2017 | 2.5 | 2.7 | 2.4 | 2.2 | 1.9 | 1.6 | 1.7 | 1.9 | 2.2 | 2.0 | 2.2 | 2.1 | 2.1 |
| 2016 | 1.4 | 1.0 | 0.9 | 1.1 | 1.0 | 1.0 | 0.8 | 1.1 | 1.5 | 1.6 | 1.7 | 2.1 | 1.3 |
| 2015 | -0.1 | 0.0 | -0.1 | -0.2 | 0.0 | 0.1 | 0.2 | 0.2 | 0.0 | 0.2 | 0.5 | 0.7 | 0.1 |
| 2014 | 1.6 | 1.1 | 1.5 | 2.0 | 2.1 | 2.1 | 2.0 | 1.7 | 1.7 | 1.7 | 1.3 | 0.8 | 1.6 |
| 2013 | 1.6 | 2.0 | 1.5 | 1.1 | 1.4 | 1.8 | 2.0 | 1.5 | 1.2 | 1.0 | 1.2 | 1.5 | 1.5 |
| 2012 | 2.9 | 2.9 | 2.7 | 2.3 | 1.7 | 1.7 | 1.4 | 1.7 | 2.0 | 2.2 | 1.8 | 1.7 | 2.1 |
| 2011 | 1.6 | 2.1 | 2.7 | 3.2 | 3.6 | 3.6 | 3.6 | 3.8 | 3.9 | 3.5 | 3.4 | 3.0 | 3.2 |
| 2010 | 2.6 | 2.1 | 2.3 | 2.2 | 2.0 | 1.1 | 1.2 | 1.1 | 1.1 | 1.2 | 1.1 | 1.5 | 1.6 |
| 2009 | 0 | 0.2 | -0.4 | -0.7 | -1.3 | -1.4 | -2.1 | -1.5 | -1.3 | -0.2 | 1.8 | 2.7 | -0.4 |
| 2008 | 4.3 | 4.0 | 4.0 | 3.9 | 4.2 | 5.0 | 5.6 | 5.4 | 4.9 | 3.7 | 1.1 | 0.1 | 3.8 |
| 2007 | 2.1 | 2.4 | 2.8 | 2.6 | 2.7 | 2.7 | 2.4 | 2.0 | 2.8 | 3.5 | 4.3 | 4.1 | 2.8 |
| 2006 | 4.0 | 3.6 | 3.4 | 3.5 | 4.2 | 4.3 | 4.1 | 3.8 | 2.1 | 1.3 | 2.0 | 2.5 | 3.2 |
| 2005 | 3.0 | 3.0 | 3.1 | 3.5 | 2.8 | 2.5 | 3.2 | 3.6 | 4.7 | 4.3 | 3.5 | 3.4 | 3.4 |
| 2004 | 1.9 | 1.7 | 1.7 | 2.3 | 3.1 | 3.3 | 3.0 | 2.7 | 2.5 | 3.2 | 3.5 | 3.3 | 2.7 |
| 2003 | 2.6 | 3.0 | 3.0 | 2.2 | 2.1 | 2.1 | 2.1 | 2.2 | 2.3 | 2.0 | 1.8 | 1.9 | 2.3 |
| 2002 | 1.1 | 1.1 | 1.5 | 1.6 | 1.2 | 1.1 | 1.5 | 1.8 | 1.5 | 2.0 | 2.2 | 2.4 | 1.6 |
| 2001 | 3.7 | 3.5 | 2.9 | 3.3 | 3.6 | 3.2 | 2.7 | 2.7 | 2.6 | 2.1 | 1.9 | 1.6 | 2.8 |
| 2000 | 2.7 | 3.2 | 3.8 | 3.1 | 3.2 | 3.7 | 3.7 | 3.4 | 3.5 | 3.4 | 3.4 | 3.4 | 3.4 |
Data Source: U.S. Bureau of Labor Statistics
Understanding Annual Inflation Rates
The annual inflation rate reflects the percentage change in prices over a 12-month period. It’s a key economic indicator that measures how quickly the cost of goods and services is rising. The figures reported are based on the Consumer Price Index (CPI), a widely recognized measure calculated and published monthly by the Bureau of Labor Statistics (BLS).
As you can see from the table, to find the annual inflation rate for a specific calendar year, you should look at the December column. For example, the inflation rate for the entire year 2024 was 2.9%. The “Ave” column provides the average inflation rate for each year, which is calculated using CPI data throughout the year. For instance, the average inflation rate in 2023 was higher, at 4.1%. While these average annual rates are calculated by the BLS, they generally receive less public attention compared to the year-over-year inflation rates that dominate news headlines.
How is the Annual Inflation Rate Calculated?
Annual inflation rates are derived from the Consumer Price Index (CPI). The CPI tracks the average change in prices paid by urban consumers for a basket of consumer goods and services. The BLS releases the CPI data monthly, providing regular updates on inflation trends.
To calculate the inflation rate for a particular month, you need two CPI values: the CPI for the current month and the CPI for the same month in the previous year. The formula involves subtracting the previous year’s CPI from the current CPI, dividing the result by the previous year’s CPI, and then multiplying by 100 to express the inflation rate as a percentage.
For example, let’s revisit the January 2017 inflation rate. The CPI for January 2017 was 242.839, and for January 2016 it was 236.916.
- Calculate the difference: 242.839 – 236.916 = 5.923
- Divide by the previous year’s CPI: 5.923 / 236.916 = 0.025
- Multiply by 100 and add a percentage sign: 0.025 * 100 = 2.5%
Therefore, the annual inflation rate for January 2017 was 2.5%. This methodology is consistently applied to calculate inflation rates across different periods.
Monthly Inflation Rates vs. Annual Inflation Rates
In addition to the annual inflation rate, the BLS also reports monthly inflation rates. These monthly figures represent the change in prices from one month to the next and are seasonally adjusted to remove predictable seasonal fluctuations. The annual inflation rates, on the other hand, are not seasonally adjusted and reflect the raw price changes over the past 12 months.
Both monthly and annual inflation rates are considered key headline figures in the Labor Department’s monthly reports on consumer prices. Monthly rates can provide a more immediate sense of price changes, while annual rates offer a broader perspective on inflation trends over a longer period.
Stay Updated on Inflation
Keeping track of the current inflation rate is essential for understanding the economic climate. The latest figure of 3% for January 2025 indicates a slight increase, and the upcoming report in March will provide further clarity on the direction of inflation. For the most up-to-date information and detailed historical data, refer to the official reports from the Bureau of Labor Statistics and utilize resources like the US Inflation Calculator to analyze inflation trends and their potential impact.
