Annual U.S. inflation, 2013–2026, with 2023 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2023 was the year inflation came down without a recession. Consumer prices
rose 4.1% on average, roughly half of 2022’s 8.0%, and the December-to-December
rate fell to 3.4%. Gasoline averaged $3.52 a gallon, well below the 2022
average, and supply-chain pressure on goods eased. Shelter, restaurant meals,
and other services stayed expensive, so the CPI kept rising at a rate well
above the pre-pandemic pace.
The Federal Reserve completed its rate-hiking campaign in July, taking the
policy rate to 5.25–5.50%, the highest level in 22 years. The effects showed
up in banking: Silicon Valley Bank failed in March after rate increases eroded
the value of its bond portfolio, the second-largest bank failure in U.S.
history at the time. Despite that, unemployment stayed under 4% all year.
Median household income was $80,610 according to the Census Bureau. The
federal minimum wage stayed at $7.25, and a first-class stamp rose to 66 cents
in July.
What things cost in 2023
In 2023, the median household income was $80,610, and a gallon of gas cost $3.52.
Median household income
$80,610
Gas (per gallon)
$3.52
First-class stamp
$0.66
Federal minimum wage
$7.25
What $100 from 2023 was worth later
$100 from 2023 had the buying power of $109
by 2026; each milestone links to that conversion.
Consumer prices rise 4.1% on average, down from 2022's 8.0%.
Consumer prices rise 4.1% on average, down from 2022's 8.0% Inflation cooled steadily through the year as energy prices fell back and supply chains healed. The 12-month rate fell from 6.5% in December 2022 to 3.4% in December 2023, though shelter and services costs stayed elevated.
The Fed raises rates to 5.25–5.50%, the highest since 2001 Four quarter-point increases in 2023, the last on July 26, completed the tightening cycle that began in March 2022. The Fed then held its rate steady through the end of the year.
Silicon Valley Bank fails on March 10 The California bank collapsed after depositors withdrew funds as rising rates cut the value of its bond holdings, followed within days by Signature Bank. Regulators guaranteed all deposits, and the Fed created a lending facility to stem further runs.
Congress suspends the debt limit in June The Fiscal Responsibility Act, signed June 3, averted a potential default by suspending the borrowing cap through January 2025 and setting spending caps.
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. 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.