US Inflation from 2012 to 2025
US inflation from 2012 to 2025 was +40.2%. $100 in 2012 had the same purchasing power as $140.22 in 2025 (avg. +2.63%/yr).
$100.00 in 2012 is worth
$140.22
in 2025
+40.2%
+2.63%/yr
How prices changed from 2012 to 2025
| Item | 2012 | 2025 | Change |
|---|---|---|---|
| Gallon of gas | $3.64 | $3.17 | −13% |
| Loaf of bread | $1.46 | $2.10 | +44% |
| New home (median) | $256,900 | $430,000 | +67% |
| Median household income | $51,017 | $85,000 | +67% |
| Movie ticket | $7.96 | $11.50 | +44% |
| Annual college tuition (public) | $8,655 | $11,800 | +36% |
What Drove Inflation from 2012 to 2025
Low Inflation: The post-crisis recovery was characterized by historically low inflation despite extraordinary monetary stimulus. The Federal Reserve kept rates near zero until 2015, expanded its balance sheet to $4.5 trillion through quantitative easing, yet consistently undershot its 2% inflation target. Labor market slack, globalization, technology-driven price competition, and weak wage growth all contributed to the persistently low inflation environment that puzzled economists throughout the decade.
COVID & Post-COVID: The COVID-19 pandemic caused the sharpest economic contraction since the Great Depression, followed by an unprecedented policy response. Trillions in fiscal stimulus and near-zero interest rates fueled rapid recovery, but supply chains remained severely disrupted. Surging demand meeting constrained supply produced the highest inflation in 40 years by mid-2021. The Federal Reserve began hiking rates in March 2022 at the fastest pace since Volcker, gradually bringing inflation down from its peak above 9%.
Understanding the Numbers
Over these 13 years, prices rose significantly — a total inflation rate of +40.2%. The annualized rate of +2.63% per year was roughly in line with the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 2012:
Ending in 2025: