Annual U.S. inflation, 2007–2026, with 2017 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2017 pushed consumer prices back above the Federal Reserve’s 2% target. The
CPI rose 2.1%, the first reading over 2% in five years, helped by a rebound
in energy after OPEC’s output cuts and by a storm-related spike at the pump:
Hurricane Harvey shut a large part of Gulf Coast refining in late August.
Gasoline averaged $2.42 a gallon, up from $2.14 in 2016.
Household incomes kept rising. The median household income reached $61,372,
and the median new home sold for about $322,100. The federal minimum wage
stayed at $7.25, its eighth year at that level, and a first-class stamp rose
to 49 cents.
The Fed raised rates three times, to 1.25–1.50%, and in October began
letting its bond holdings shrink. Congress passed the Tax Cuts and Jobs Act
in December, lowering the corporate rate to 21%. Even with unemployment near
4%, core inflation stayed under 2%, a puzzle that shaped Fed debates for the
next two years.
What things cost in 2017
In 2017, the median household income was $61,372, and a gallon of gas cost $2.42.
Median household income
$61,372
Gas (per gallon)
$2.42
Median home price
$322,100
First-class stamp
$0.49
Federal minimum wage
$7.25
What $100 from 2017 was worth later
$100 from 2017 had the buying power of $136
by 2026; each milestone links to that conversion.
Consumer prices rise 2.1%, the first year above 2% since 2012.
Consumer prices rise 2.1%, the first year above 2% since 2012 Energy rebounded after OPEC's output cuts and gasoline spiked briefly after Hurricane Harvey. Core inflation, which excludes food and energy, was softer than the headline, near 1.8%.
The Fed raises rates three times, to 1.25–1.50% Increases in March, June, and December continued the gradual tightening begun in 2015. In October the Fed also began shrinking its balance sheet by letting bonds mature without reinvestment.
Congress passes the Tax Cuts and Jobs Act Signed December 22, the law cut the corporate tax rate from 35% to 21%, lowered most individual rates, and roughly doubled the standard deduction.
Hurricanes Harvey, Irma, and Maria strike the U.S. and Caribbean Harvey in late August shut a large share of Gulf Coast refining capacity and pushed gasoline up by about 30 cents a gallon within weeks. Hurricane Maria's September landfall left Puerto Rico without power for months.
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.