Economy articles
Are wages keeping up with inflation?
No. From May 2025 to May 2026, wages grew 0.5 percentage points slower than inflation. Nominal wages — the literal dollars earned regardless of cost of living — increased by 3.7% while inflation stood at 4.2%. When wage growth trails inflation, it indicates that workers are experiencing a decrease in purchasing power from the previous year.
How has inflation affected your dollar?
Inflation, simply put, is the rise in prices over time. As a result, each dollar buys less than it did before. Use this inflation calculator below to track the value of the dollar. See how a dollar has changed in worth during your lifetime, or even as far back as 1913, when the data begins. Or reverse the numbers and track what the cost of an item today was worth in the past.
What is the current inflation rate in the US?
The inflation rate was 4.2%, as of May 2026. Inflation refers to the rise in prices of goods and services over time, which reduces the purchasing power of the dollar. The inflation rate is the percentage that describes how quickly these prices are rising. While several government datasets track price changes, the Consumer Price Index (CPI) represents about 90% of the US population. The CPI measures inflation by tracking the price fluctuations of a “basket of goods and services” over time, providing a clear picture of how inflation affects everyday living expenses.
What are the biggest drivers of inflation in the past year?
Housing was the main driver of inflation from May 2025 to May 2026. As of May 2026, overall prices increased 4.2% over the previous year. Of this, 1.6 percentage points came from price increases in housing, or about two-fifths 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 categories with lower weights. By examining the price changes across different categories, we can better understand the factors contributing to the current inflation rate.
What is the money supply, and how does it relate to inflation?
How much money is there? The Federal Reserve keeps track.
How much is spent on personal healthcare in the US?
National spending on personal healthcare per person has increased 1,306% since 1980 — over three times faster than inflation. More than $4.5 trillion total was spent in 2024.
Why might prices feel high if inflation is slowing?
Inflation is down, but three in four Americans are still concerned about coming price increases.
How will the Inflation Reduction Act change the IRS?
The Inflation Reduction Act would double the number of employees and expand the auditing capacity of the IRS.
What is inflation and how is it measured?
One of the most common economic indicators helps contextualize how much a dollar can buy.
How did the Inflation Reduction Act of 2022 change corporate taxes?
The Joint Committee on Taxation estimated that about 150 corporations would be subject to a new minimum corporate tax each year.
What is the average price of beef in the US?
As of May 2026, the average price of ground beef nationwide was $6.75 per pound. This figure comes from the Bureau of Labor Statistics' (BLS) Average Price data, which tracks the cost of specific items commonly purchased by US households. BLS also tracks broader categories containing many products through the Consumer Price Index (CPI). The CPI category "beef and veal," which includes ground beef along with steaks, roasts, and other cuts, rose 12.9% over the past 12 months.
Just the Facts about the US economy
How does the government measure the economy? By tracking GDP, unemployment numbers, and the prices people pay for goods and services.
The history and impact of the Federal Reserve
The Federal Reserve may be the most important bank you never use. But why is it called a “bank”, how is it governed, and how does it influence daily life in the US? In this episode of Just the Facts, Steve Ballmer tells you everything you need to know about the Federal Reserve Bank of the United States.
What the Personal Consumption Expenditures Index (PCE) says about the US
Closely monitored by the Federal Reserve, personal consumption expenditures are an economic indicator that provide greater insight into how Americans earn, save, and spend.
What is the Federal Reserve?
Established in 1913, the Federal Reserve serves as the nation’s central bank, directing monetary policy and supporting financial stability.
What is the gross domestic product (GDP) in the US?
The gross domestic product (GDP) was $24.2 trillion in Q1 2026. GDP measures the value of goods and services a country or state produces — it’s the sum of consumer spending, business investment, government spending, and net exports. It is often used to quantify the size of its economy. The $24.2 trillion is the “real GDP,” which is adjusted to account for inflation to make it easier to compare the size of an economy over time.
How much revenue does the federal government collect from tariffs?
The federal government collected $194.9 billion in revenues from tariffs in FY 2025. This figure reflects revenue from tariffs and other import-related fees, also known as customs duties. Customs duties are taxes and fees paid by US importers and collected by US Customs and Border Protection on goods imported into the country, which generate revenue for the federal government.
What do Americans think of the economy?
In 2025, roughly one-fourth of adults described the national economy as good or excellent, down 3 percentage points from 2024.
What is the average wage in the US?
The average wage was $1,287 per week in May 2026, 0.5% lower than a year before. The average weekly wage, the typical earnings that employees bring home for one week of work, is a valuable indicator to assess economic conditions, labor market health, and wage trends.
Are groceries more expensive than last year?
Grocery store food prices increased 2.1% from January 2025 to January 2026 – the product with the biggest jump, ground beef, went up more than 21%.