US Inflation from 2015 to 2020
US inflation from 2015 to 2020 was +9.2%. $100 in 2015 had the same purchasing power as $109.19 in 2020 (avg. +1.77%/yr).
$100.00 in 2015 is worth
$109.19
in 2020
+9.2%
+1.77%/yr
How prices changed from 2015 to 2020
| Item | 2015 | 2020 | Change |
|---|---|---|---|
| Gallon of gas | $2.45 | $2.17 | −11% |
| Loaf of bread | $1.50 | $1.56 | +4% |
| New home (median) | $296,400 | $391,900 | +32% |
| Median household income | $56,516 | $67,521 | +19% |
| Movie ticket | $8.61 | $9.37 | +9% |
| Annual college tuition (public) | $9,410 | $10,560 | +12% |
What Drove Inflation from 2015 to 2020
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 5 years, prices rose modestly — a total inflation rate of +9.2%. The annualized rate of +1.77% per year was below the historical average of roughly 3.3% per year.
Compare Other Periods
Starting from 2015:
Ending in 2020: