Annual U.S. inflation, 2005–2025, with 2015 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2015 was almost a year with no inflation at all. Consumer prices rose 0.1%,
the smallest increase since the 2009 decline, because energy prices kept
falling. Gasoline averaged $2.45 a gallon, down from $3.37 in 2014, and a
strong dollar made imported goods cheaper. The picture was different outside
food and energy: core prices rose about 1.8% as rents and medical costs
climbed.
Incomes finally showed real progress. Median household income reached $56,516,
a large jump from $53,657, and the median new home sold for about $296,400. The
federal minimum wage stayed at $7.25, and a first-class stamp stayed at 49
cents.
The Federal Reserve chose December to end its zero-rate policy, raising the
target range to 0.25–0.50% for the first time since 2006. It moved even
though headline inflation was far under 2%, arguing that the drag from
energy was temporary. Earlier, a currency shift in China in August had shaken
global markets and pushed oil below $40 a barrel. Prices in 2015 ended
the year barely above their 2014 level.
What things cost in 2015
In 2015, the median household income was $56,516, and a gallon of gas cost $2.45.
Median household income
$56,516
Gas (per gallon)
$2.45
Median home price
$296,400
First-class stamp
$0.49
Federal minimum wage
$7.25
What $100 from 2015 was worth later
$100 from 2015 had the buying power of $140
by 2026; each milestone links to that conversion.
Consumer prices rise just 0.1%, the weakest year since 2009.
Consumer prices rise just 0.1%, the weakest year since 2009 Cheap energy did most of the work. Gasoline fell by roughly a quarter on the year, and a strong dollar held down goods prices, while shelter and medical care kept rising. Excluding food and energy, prices rose about 1.8%.
The Fed raises interest rates for the first time since 2006 On December 16 the Federal Open Market Committee lifted its policy rate to 0.25–0.50%, ending seven years at zero. Officials said the labor market had improved enough and that they expected inflation to return toward 2% as energy effects faded.
China devalues the yuan in August A surprise change in China's currency policy on August 11 set off a global stock selloff and renewed worries about world growth and commodity demand.
Oil falls below $40 a barrel in the summer U.S. crude dropped from around $60 in June to the mid-$30s by December as U.S. producers kept pumping and OPEC refused to cut output.
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, crude oil); 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.