Annual U.S. inflation, 2003–2023, with 2013 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2013 was a low-inflation year with a lot of noise around the Federal Reserve.
Consumer prices rose 1.5%, below the Fed’s 2% target, and gasoline eased to an
average of $3.51 a gallon. Housing was the exception: the median new home sold
for about $268,900, up sharply from $245,200 in 2012, as the market recovered
from its post-crisis bottom.
The Fed dominated the news. Chairman Ben Bernanke’s May comments about slowing
bond purchases pushed long-term interest rates up by roughly a percentage
point that summer, and mortgages became more expensive within weeks. In
December the Fed finally announced a first small cut to its purchases while
promising to keep short-term rates near zero for a long time.
Washington added its own disruption. A 16-day government shutdown in October
delayed data releases and left a hole in that month’s CPI collection. Median
household income was reported at $53,585, the federal minimum wage stayed at
$7.25, and a first-class stamp cost 46 cents. The decade’s pattern was taking
shape: slow price growth, ultra-low interest rates, and a labor market that
improved gradually.
What things cost in 2013
In 2013, the median household income was $53,585, and a gallon of gas cost $3.51.
Median household income
$53,585
Gas (per gallon)
$3.51
Median home price
$268,900
First-class stamp
$0.46
Federal minimum wage
$7.25
What $100 from 2013 was worth later
$100 from 2013 had the buying power of $143
by 2026; each milestone links to that conversion.
Consumer prices rise 1.5%, below the Fed's target.
Consumer prices rise 1.5%, below the Fed's target Inflation slowed for the second straight year. Energy prices were flat to lower, and shelter was the largest source of increases as rents and home prices recovered.
Bernanke's "taper" remarks rattle bond markets in May On May 22, Fed Chairman Ben Bernanke told Congress the Fed could slow its bond purchases if the economy kept improving. Ten-year Treasury yields jumped by about a percentage point over the summer, and mortgage rates followed.
The Fed announces it will begin tapering in December On December 18 the Federal Open Market Committee cut its monthly purchases from $85 billion to $75 billion, the first step in winding down QE3, while promising to keep its policy rate near zero well past the end of purchases.
The federal government shuts down for 16 days in October A budget standoff over the Affordable Care Act halted nonessential government operations from October 1 to 16. The Bureau of Labor Statistics did not collect October's price data in the usual way, leaving a gap in the CPI record.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index (CPI-U, U.S. city average); U.S. Census Bureau, Current Population Survey (income); U.S. Census Bureau, New Residential Sales (home price); U.S. Energy Information Administration (gasoline); U.S. Department of Labor (minimum wage); USPS historical rates; Board of Governors of the Federal Reserve System, press releases.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages.
See the methodology.