US inflation rate today
US consumer prices were 3.4% higher in August 2026 than a year earlier, according to the Bureau of Labor Statistics. With the Fed funds rate at 3.88%, the real interest rate is +0.48 points.
- US inflation (CPI) 3.4% 12 months to Aug 2026
- Core inflation 2.4% Excluding food and energy
- Fed funds rate 3.88% Target 3.75–4.00%
- Real interest rate +0.48% Fed funds rate minus CPI
The latest US figures
From the BLS and the Federal Reserve, via our weekly history refresh. The figures at the top of the page update within minutes of each release.
| Measure | Latest | Month before | A year earlier |
|---|---|---|---|
| CPI inflation, 12 monthsBLS, CPI-U | 3.4% Aug 2026 | 3.4% Jul 2026 | 2.9% Aug 2025 |
| Fed funds rateMonthly average | 3.75% Sep 2026 | 3.63% Aug 2026 | 4.22% Sep 2025 |
| Real interest rateFed funds rate minus CPI | +0.23 pts Aug 2026 | +0.27 pts Jul 2026 | +1.41 pts Aug 2025 |
| 3-month Treasury billSecondary market | 3.94% Sep 2026 | 3.72% Aug 2026 | 3.92% Sep 2025 |
| M2 money supply growth12 months | 5.7% Aug 2026 | 5.4% Jul 2026 | 4.2% Aug 2025 |
In short
- Prices rose 3.4% in the year to August 2026. At that pace a dollar loses half its buying power in about 21 years.
- The Fed funds rate of 3.88% sits 0.48 points above inflation.
- The real rate has been below zero in 69% of months since January 2009.
- $1 from 2000 needs to be $1.95 today to buy the same things.
US inflation history
US CPI inflation since 1914, 12-month rate
| Decade | Average a year | Highest 12-month rate | Lowest 12-month rate |
|---|---|---|---|
| 1910sfrom Jan 1913 | 10.0% | 20.7% Nov 1918 | −1.0% Aug 1915 |
| 1920s | −0.9% | 23.7% Jun 1920 | −15.8% Jun 1921 |
| 1930s | −2.0% | 5.6% Mar 1934 | −10.7% Oct 1932 |
| 1940s | 5.4% | 19.7% Mar 1947 | −2.9% Jul 1949 |
| 1950s | 2.2% | 9.4% Feb 1951 | −2.1% Jan 1950 |
| 1960s | 2.5% | 6.2% Dec 1969 | 0.7% Oct 1961 |
| 1970s | 7.4% | 13.3% Dec 1979 | 2.7% Jun 1972 |
| 1980s | 5.1% | 14.8% Mar 1980 | 1.1% Dec 1986 |
| 1990s | 2.9% | 6.3% Oct 1990 | 1.4% Mar 1998 |
| 2000s | 2.5% | 5.6% Jul 2008 | −2.1% Jul 2009 |
| 2010s | 1.8% | 3.9% Sep 2011 | −0.2% Apr 2015 |
| 2020sto Aug 2026 | 4.1% | 9.1% Jun 2022 | 0.1% May 2020 |
Average yearly rise in prices for each decade, from the December before to the last December (or the latest month). The fastest decade was the 1910s, at 10.0% a year, when $100 lost about 61% of its buying power.
Fed interest rate and the real interest rate
The real rate here is the Fed funds rate minus inflation over the previous 12 months: a quick test of whether cash at the policy rate keeps its buying power.
Fed funds rate and inflation since 1955
- Fed funds rate
- CPI inflation
US real interest rate since 1955
What the dollar has lost
Average prices in each year against August 2026.
| Year | $1 then in today's money | Today's $1 buys | Buying power lost |
|---|---|---|---|
| 1913 | $33.89 | 3.0¢ | 97% |
| 1929 | $19.52 | 5.1¢ | 95% |
| 1950 | $13.92 | 7.2¢ | 93% |
| 1970 | $8.63 | 11.6¢ | 88% |
| 1980 | $4.06 | 24.6¢ | 75% |
| 1990 | $2.56 | 39.0¢ | 61% |
| 2000 | $1.95 | 51.4¢ | 49% |
| 2010 | $1.54 | 65.1¢ | 35% |
| 2020 | $1.29 | 77.3¢ | 23% |
Try your own amount
The inflation calculator works this out for any amount and any month, against US prices, UK prices or the US money supply.
Prices are only half the story. The M2 money supply page shows how much faster the number of dollars has grown, and real returns shows what that did to shares, gold and crypto.
Next US release dates
Dates come from the official calendars. Times are UK time.
| Release | Date |
|---|---|
| US inflation figuresSeptember 2026 figures, 8:30am New York time | 14 Oct 2026 13:30 BST UK time |
| Federal Reserve rate decisionFOMC statement, 2pm New York time | 28 Oct 2026 18:00 GMT UK time |
| US inflation figuresOctober 2026 figures, 8:30am New York time | 10 Nov 2026 13:30 GMT UK time |
| Federal Reserve rate decisionFOMC statement, 2pm New York time | 9 Dec 2026 19:00 GMT UK time |
| US inflation figuresNovember 2026 figures, 8:30am New York time | 10 Dec 2026 13:30 GMT UK time |
US inflation terms explained
- CPI-U 3.4%
- The consumer price index for all urban consumers, which covers more than 90% of the US population. The BLS prices a basket of goods and services every month; the headline rate is its change over 12 months.
- Core inflation 2.4%
- CPI with food and energy taken out, because those two swing the most from month to month. Economists watch it to judge the underlying trend.
- PCE price index
- The Commerce Department's measure of what households spend, and the one the Federal Reserve's 2% goal refers to. It weights housing less heavily than CPI and usually runs a few tenths lower.
- Fed funds rate 3.88%
- The overnight rate at which US banks lend reserves to each other. The Federal Open Market Committee sets a target range for it eight times a year.
US inflation questions
Answers update when the BLS and the Federal Reserve publish new numbers.
What is the US inflation rate right now?
The Bureau of Labor Statistics put the 12-month rise in the consumer price index (CPI-U) at 3.4% for August 2026, the same as the month before. Core inflation, which leaves out food and energy because they swing the most, was 2.4%. The Federal Reserve's 2% goal is set on a different measure, the PCE price index, which usually runs a few tenths below CPI. So a CPI reading a little above 2% does not on its own mean the Fed is missing its target.
The next CPI release, covering September 2026, is due on 14 Oct 2026 at 8:30am New York time. This page picks it up within minutes.
What is the Fed interest rate today?
The effective federal funds rate, the overnight rate banks charge one another and the one the Fed steers, was 3.88% against a target range of 3.75–4.00%. The next scheduled decision by the Federal Open Market Committee is on 28 Oct 2026. Mortgage, loan and savings rates in the US take their lead from it, although longer-term rates also depend on what markets expect inflation to do.
What is the real interest rate in the US?
Our measure takes the Fed funds rate and subtracts CPI inflation over the previous 12 months: 3.88% minus 3.4% gives +0.48 points. A positive number means money held at the policy rate is keeping ahead of prices before tax. A negative one means it is losing buying power.
The lowest reading since 1955 came in March 2022, at −8.3 points, when the Fed kept rates near zero while inflation climbed. Across the months since January 2009 the real rate was below zero 69% of the time, which is the long stretch our money-printing research keeps coming back to.
What was the highest US inflation rate?
In the monthly series that starts in 1913, the highest 12-month rate was 23.7% in June 1920, as prices jumped after the First World War. Since 1950 the peak was 14.8% in March 1980, which led the Fed under Paul Volcker to push its rate close to 20%. The 2022 surge topped out at about 9%, lower than either.
How much buying power has the dollar lost?
Using the average CPI for each year against August 2026, $1 from 2000 now needs to be $1.95, a loss of 49% of its buying power. $1 from 1913 needs to be about $33.9. The inflation calculator does the same sum for any month back to 1913, and the money supply page sets it against the growth of M2.
Important information
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