Annual U.S. inflation, 2015–2026, with 2025 highlighted. Bars below the line
are deflation. Source: BLS CPI-U.
2025 was a year of trade policy and data disruptions rather than an
inflation surge. Consumer prices rose 2.6% on average, a step down from
2024’s 2.9% and well below the 8.0% of 2022. Tariffs announced in April
pushed up prices for some imported goods, including furniture, apparel, and
auto parts, but the effect on the overall index was smaller than many
forecasters feared at the start of the year, in part because retailers
absorbed some of the cost and demand for services stayed steady.
The Federal Reserve held its policy rate steady through the first half of the
year, then began cutting again in September, lowering it in three quarter-point
steps to 3.50–3.75% by December.
The federal government shutdown that began October 1 lasted 43 days, and the
Bureau of Labor Statistics did not publish a CPI for October 2025 because the
survey data could not be collected. The federal minimum wage stayed at $7.25,
and a first-class stamp rose to 78 cents in July.
What things cost in 2025
In 2025, a first-class stamp cost $0.78, and the federal minimum wage was $7.25.
First-class stamp
$0.78
Federal minimum wage
$7.25
What $100 from 2025 was worth later
$100 from 2025 had the buying power of $103
by 2026; each milestone links to that conversion.
Consumer prices rise 2.6% on average Annual inflation was slightly lower than 2024's 2.9%. Tariffs raised prices on some imported goods during the year, while shelter costs continued to cool gradually.
The administration announces sweeping "reciprocal" tariffs on April 2 The plan set new import duties on most trading partners, with a 10% baseline and higher rates for many countries. Later announcements delayed, reduced, or changed many of the rates, and financial markets swung sharply in April.
A 43-day federal government shutdown begins October 1 The longest in U.S. history delayed federal data. The Bureau of Labor Statistics could not collect October 2025 price data, so no CPI was published for that month.
The Fed resumes rate cuts in September After holding its rate at 4.25–4.50% for most of the year, the Federal Reserve cut by a quarter point on September 17, and again in October and December, bringing the range to 3.50–3.75%.
Sources: U.S. Bureau of Labor Statistics, Consumer Price Index (CPI-U, U.S. city average); 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.