Annual U.S. inflation, 2008–2026, with 2018 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2018 was the peak of the late-2010s expansion. Consumer prices rose 2.4%,
the fastest since 2011, with gasoline averaging $2.72 a gallon after a summer
high. Unemployment fell to 3.7% in September, the lowest since 1969, and median
household income reached $63,179. The median new home sold for about $331,800,
and a first-class stamp cost 50 cents. The federal minimum wage was still $7.25.
Trade policy became a price factor for the first time in decades. New tariffs
on steel, aluminum, and a growing list of Chinese goods raised costs for
manufacturers and some consumer products, and retaliation cut into exports of
soybeans and other farm goods.
The Federal Reserve, led from February by Jerome Powell, raised rates four
times to 2.25–2.50%. A stock-market drop of nearly 20% in the fourth quarter
led the Fed to signal a pause in early 2019. Oil fell from over $75 a barrel in
October to below $50 by December, which pulled headline inflation lower going
into the next year.
What things cost in 2018
In 2018, the median household income was $63,179, and a gallon of gas cost $2.72.
Median household income
$63,179
Gas (per gallon)
$2.72
Median home price
$331,800
First-class stamp
$0.50
Federal minimum wage
$7.25
What $100 from 2018 was worth later
$100 from 2018 had the buying power of $132
by 2026; each milestone links to that conversion.
Consumer prices rise 2.4%, the fastest since 2011.
Consumer prices rise 2.4%, the fastest since 2011 Gasoline peaked near $2.90 a gallon in the summer before falling sharply in the fourth quarter. Rents and medical care kept rising, while tariffs added to the price of items such as washing machines and steel-based goods.
The U.S. imposes tariffs on steel, aluminum, and Chinese imports Tariffs of 25% on steel and 10% on aluminum took effect March 23, and a 25% tariff on $34 billion of Chinese goods followed on July 6. China and other trading partners retaliated, hitting U.S. farm exports in particular.
The Fed raises rates four times, to 2.25–2.50% Under new Chairman Jerome Powell, who took office February 5, the policy rate climbed at every other meeting. Stocks fell close to 20% from their September peak by Christmas Eve on worries about growth and Fed policy.
Unemployment falls to 3.7% in September The lowest rate since 1969, a sign of a tight labor market, though wage growth only reached about 3% a year.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index (CPI-U, U.S. city average; Employment Situation); 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; Office of the U.S. Trade Representative.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages.
See the methodology.