US Inflation from 2020 to 2025
US inflation from 2020 to 2025 was +24.4%. $100 in 2020 had the same purchasing power as $124.39 in 2025 (avg. +4.46%/yr).
$100.00 in 2020 is worth
$124.39
in 2025
+24.4%
+4.46%/yr
How prices changed from 2020 to 2025
| Item | 2020 | 2025 | Change |
|---|---|---|---|
| Gallon of gas | $2.17 | $3.17 | +46% |
| Loaf of bread | $1.56 | $2.10 | +35% |
| New home (median) | $391,900 | $430,000 | +10% |
| Median household income | $67,521 | $85,000 | +26% |
| Movie ticket | $9.37 | $11.50 | +23% |
| Annual college tuition (public) | $10,560 | $11,800 | +12% |
What Drove Inflation from 2020 to 2025
The 2020s began with the COVID-19 pandemic, which triggered the sharpest short-term economic contraction since the Depression. Massive fiscal and monetary stimulus fueled a rapid recovery, but supply chain disruptions and surging demand produced the highest inflation in four decades by 2021–2022. The Federal Reserve responded with the fastest rate-hiking cycle in 40 years, gradually bringing inflation back toward its 2% target.
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 +24.4%. The annualized rate of +4.46% per year was above the historical average of roughly 3.3% per year.
Compare Other Periods
Ending in 2025: