US Inflation from 2016 to 2025
US inflation from 2016 to 2025 was +34.1%. $100 in 2016 had the same purchasing power as $134.14 in 2025 (avg. +3.32%/yr).
$100.00 in 2016 is worth
$134.14
in 2025
+34.1%
+3.32%/yr
How prices changed from 2016 to 2025
| Item | 2016 | 2025 | Change |
|---|---|---|---|
| Gallon of gas | $2.14 | $3.17 | +48% |
| Loaf of bread | $1.52 | $2.10 | +38% |
| New home (median) | $307,800 | $430,000 | +40% |
| Median household income | $59,039 | $85,000 | +44% |
| Movie ticket | $8.65 | $11.50 | +33% |
| Annual college tuition (public) | $9,650 | $11,800 | +22% |
What Drove Inflation from 2016 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 9 years, prices rose significantly — a total inflation rate of +34.1%. The annualized rate of +3.32% per year was roughly in line with the historical average of roughly 3.3% per year.
Compare Other Periods
Ending in 2025: