2022 was the year inflation returned. Consumer prices rose 8.0% on average, the worst since 1981, driven by pandemic-era supply chains, stimulus-fueled demand, and an energy shock from the war in Ukraine. Gas briefly topped $5 a gallon nationally for the first time ever, and “inflation” became the top-ranked economic concern in nearly every poll of American households.
Year in review
Inflation in 2022
The U.S. inflation rate in 2022 was 8.0% (CPI: 292.655). Convert 2022 dollars to today →
8.0% 2022 inflation rate
3.8% 2020s average
9.1% peak month (Jun)
6.5% lowest month (Dec)
What things cost in 2022
| Median household income | $74,580 |
|---|---|
| Gas (per gallon) | $3.95 |
| Median home price | $442,600 |
| First-class stamp | $0.60 |
| Federal minimum wage | $7.25 |
What $100 from 2022 was worth later
| In 2026 | $113 |
|---|
Inflation in 2022, month by month
| Month | CPI-U | 12-month rate |
|---|---|---|
| January | 281.148 | 7.5% |
| February | 283.716 | 7.9% |
| March | 287.504 | 8.5% |
| April | 289.109 | 8.3% |
| May | 292.296 | 8.6% |
| June | 296.311 | 9.1% |
| July | 296.276 | 8.5% |
| August | 296.171 | 8.3% |
| September | 296.808 | 8.2% |
| October | 298.012 | 7.7% |
| November | 297.711 | 7.1% |
| December | 296.797 | 6.5% |
Economic events of 2022
- Inflation peaks at 9.1% year-over-year in June, a 40-year high The highest 12-month reading since November 1981. The surge combined pandemic aftershocks (snarled supply chains, semiconductor shortages, and household savings built up from stimulus payments meeting reopened demand) with a full-blown energy shock.
- Russia's invasion of Ukraine spikes energy and food prices worldwide The February invasion sent oil above $120 a barrel and pushed the U.S. average gasoline price to a record $5.02 a gallon in June. Wheat, corn, and fertilizer exports from the region were disrupted too, feeding grocery inflation for the rest of the year.
- The Fed begins its fastest rate-hiking cycle since the 1980s Starting from near zero in March, the Federal Reserve raised rates at every meeting of the year, including four consecutive 0.75-point moves, to reach 4.25–4.50% by December. Nothing comparable had happened since the Volcker era, and the goal was the same: keep high inflation from becoming entrenched expectations.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages. See the methodology.