What are the biggest drivers of inflation in the past year?

Updated Apr. 14, 2026Refreshed monthly
Housing was the main driver of inflation from March 2025 to March 2026. As of March 2026, overall prices increased 3.3% over the previous year. Of this, 1.5 percentage points came from price increases in housing, or about one-half of it.

The inflation rate is calculated using the Consumer Price Index (CPI), which tracks the price changes of a consistent basket of goods and services over time. Each item in this basket is given a weight that reflects how much the average urban household spends on it. Items with higher weights, like shelter, tend to have a larger impact on the overall inflation rate than other categories. By examining the price changes across different categories, we can better understand the factors contributing to the current inflation rate.

3.3%

annual inflation rate, all items (Mar 2025 to Mar 2026)

9/20

of the inflation rate was driven by prices changes in housing
The basket of goods and services used to calculate the CPI includes more than 200 individual items, grouped into eight major categories. These categories are:

  • apparel
  • education and communication
  • food and beverages
  • housing
  • medical care
  • recreation
  • transportation
  • other goods and services
All eight categories have their own inflation rates that contribute to the overall inflation rate. If prices decrease in a category, its inflation rate is negative and it brings the overall inflation rate down.

In March 2026, housing contributed 1.5 percentage points to the 3.3% overall inflation rate.

Components of year-over-year percent change of CPI-U, all items, not seasonally adjusted (Jan 2021 – Mar 2026)

What share of the CPI does each category have?

The weight assigned to each category reflects its relative importance in a typical household’s budget, determined based on surveys of more than 20,000 households and individuals. Housing, which includes shelter, utilities, and household operations, holds the largest share of the CPI. Transportation has the second-highest weight, while food and beverages are third. Transportation had a 0.82 percentage point contribution to the annual inflation rate in March 2026. Food and beverages had a 0.38 percentage point contribution.

Housing accounts for the largest portion of the CPI.

Relative importance in the CPI-U, by goods and services, as of March 2026

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How have prices changed over the last year?

Regardless of the importance of categories within the CPI, looking at the inflation rate of each category can provide an understanding of how much prices are increasing or decreasing.
The highest inflation rate among the eight categories was that of housing. Housing prices were 3.4% higher in March 2026 than they were a year before.
During the same period, education and communication prices did not change.

In March 2026, transportation prices were 5% higher than they were a year before.

Year-over-year percent change of CPI-U (Mar 2025 to Mar 2026), not seasonally adjusted

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Methodology

USAFacts standardizes data, in areas such as time and demographics, to make it easier to understand and compare.

The analysis was generated with the help of AI and reviewed by USAFacts for accuracy.

Page sources

USAFacts endeavors to share the most up-to-date information available. We sourced the data on this page directly from government agencies; however, the intervals at which agencies publish updated data vary.