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.