U.S. Inflation: What It Is, How It Is Measured and Historical Trends

Inflation is a general increase in the price of goods and services over time, reducing the purchasing power of the dollar. The U.S. Bureau of Labor Statistics tracks inflation primarily through the Consumer Price Index, which measures price changes in a fixed basket of household goods and services. As of July 2026, headline inflation was 3.4 percent year over year, while core inflation excluding food and energy was 2.5 percent. This article explains the definition, methodology, historical context, and limitations of U.S. inflation data.

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Median Income vs. Average Income: Why the Middle Tells a Different Story

Median income and average income answer different questions. The median is the middle point of the income distribution and is not pulled by extreme earners, while the average can be heavily skewed by a small number of very high incomes. In the United States, the 2024 median household income was $83,730, but the average is significantly higher due to wealthy outliers. Understanding the difference is essential for interpreting economic well-being and inequality.

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