Inflation over the last 12 months in the U.S. remained over 5 percent. The August release of the Consumer Price Index (CPI) data indicates that prices continue to rise way above normal as the economy tries to recover from the COVID-19 recession. The figure below shows CPI inflation since 2011.
In recent history, inflation has averaged 2% or less, but the COVID recession and Federal Reserve responses have definitely pushed up price level increases over the past year. Prices of some items in a typical consumers budget have risen drastically in the past year. Among the biggest increases price increases were gasoline (+42.7%), car and truck rental (+52.6%), used cars and trucks (+31.9%). Prices that fell over the past year include cheese (-2.4%), prescription drugs (-2.7%), and music subscriptions (-1.4%).