United States Consumer Price Index (CPI) YoY (2024)

FAQs

What does CPI YoY mean? ›

The YoY reading compares the prices of goods in the reference month to the same month a year earlier. The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.

US Consumer Price Index is at a current level of 313.22, up from 313.21 last month and up from 303.36 one year ago. This is a change of 0.01% from last month and 3.25% from one year ago.

US Consumer Price Index YoY is at 3.27%, compared to 3.36% last month and 4.05% last year. This is lower than the long term average of 3.28%.

The CPI is used as a proxy for inflation. Typically, Americans can expect the CPI to increase between about 1% and 4% each year, based on data from the last couple of decades. However, the Federal Reserve wants to see the annual inflation rate stay around 2%.

The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.

Is a lower CPI figure good for markets, or a higher figure? When the CPI is rising it means that consumer prices are also rising, and when it falls it means consumer prices are generally falling. In short, a higher CPI indicates higher inflation, while a falling CPI indicates lower inflation, or even deflation.

The CPI is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy.

US Consumer Price Index: Food Away From Home is at a current level of 367.10, up from 365.81 last month and up from 352.89 one year ago. This is a change of 0.35% from last month and 4.03% from one year ago.

Key takeaways. The current inflation rate is 3.3%, with shelter and motor vehicle insurance still major contributors. Prices have risen 20.8% since the pandemic-induced recession began in February 2020, with just 6% of the nearly 400 items the Bureau of Labor Statistics tracks cheaper today.

What is a good inflation rate? ›

The Fed has stated on numerous occasions that its goal is an annual inflation rate of 2%. This is close to the inflation rate prior to the pandemic. However, the Fed's stated goal raises the obvious question: Why stop at a 2% inflation rate?

Generally speaking, inflation can be caused by a number of factors. The recent surge in inflation has been driven, at least in part, by supply chain issues, a housing crisis, pent-up consumer demand and economic stimulus from the pandemic. » Learn more: When will inflation go down?

Year-over-year (YOY)—sometimes referred to as year-on-year—is a frequently used financial comparison for looking at two or more measurable events on an annualized basis.

A high CPI means that you must spend more to purchase the same goods – and that cash savings are losing value over time. Inflation is one of the most important ways the economy impacts consumers. During periods of high inflation, money simply doesn't go as far, so people need to watch their budgets more carefully.

The Consumer Price Index measures the overall change in consumer prices based on a representative basket of goods and services over time. The CPI is the most widely used measure of inflation, closely followed by policymakers, financial markets, businesses, and consumers.