Annual U.S. inflation, 2014–2026, with 2024 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2024 brought inflation close to normal without fully reaching it. Consumer
prices rose 2.9% on average, the smallest yearly increase since 2020, and the
December-to-December rate was also 2.9%. Gasoline averaged $3.30 a gallon,
below 2023’s $3.52. Shelter stayed the biggest driver of the index, so the
pace of price growth in categories that households can’t easily avoid, such as
rent and insurance, lagged the drop in goods and energy costs.
The Federal Reserve declared progress in September, cutting its policy rate
by half a point, the first reduction since the pandemic emergency, and then
by a quarter point in November and again in December. Mortgage rates near 7%
kept the housing market frozen for many would-be buyers.
Median household income was $83,730, the federal minimum wage stayed at $7.25,
and a first-class stamp rose to 73 cents in July. After the November election,
attention turned to how announced tariffs and tax policy might affect prices
in 2025.
What things cost in 2024
In 2024, the median household income was $83,730, and a gallon of gas cost $3.30.
Median household income
$83,730
Gas (per gallon)
$3.30
First-class stamp
$0.73
Federal minimum wage
$7.25
What $100 from 2024 was worth later
$100 from 2024 had the buying power of $106
by 2026; each milestone links to that conversion.
Consumer prices rise 2.9% on average, the slowest since 2020.
Consumer prices rise 2.9% on average, the slowest since 2020 The 12-month rate ended the year at 2.9% in December, down from 3.4% a year earlier. Shelter remained the largest single contributor to the increase, while gasoline prices were lower than in 2023.
The Fed begins cutting rates in September On September 18 the Federal Open Market Committee lowered its policy rate by half a point, to 4.75–5.00%, its first cut since March 2020. Further quarter-point cuts in November and December brought the range to 4.25–4.50%.
Donald Trump wins the presidential election on November 5 Markets and forecasters began to price in the possible effects of new tariffs and tax changes on prices, and long-term Treasury yields rose after the vote.
Mortgage rates stay near 7% Home sales remained near their lowest in nearly 30 years as buyers faced high borrowing costs and owners with low-rate mortgages held on to their homes.
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; Freddie Mac, Primary Mortgage Market Survey.
Inflation figures: U.S. Bureau of Labor Statistics, CPI-U annual averages.
See the methodology.