Between 2020 and 2024, inflation in the U.S. has been a wild ride, fueled by pandemic disruptions, supply chain issues, and geopolitical conflicts. The average price increase across all goods and services was about 21.8%, according to the Consumer Price Index (CPI). However, some categories felt the pinch more than others.
Food prices rose by 22.4% over these four years. The peak came in 2022 when food inflation hit nearly 10%, driven by higher costs for ingredients and transportation. Grocery staples like eggs and dairy saw significant spikes during this time.
Gasoline experienced an even more dramatic surge. In 2020, the average price per gallon was around $2.17, but it shot up to over $4 by mid-2022 due to supply chain shocks and global oil market volatility. Although gas prices have fallen somewhat since, they remained around $3.52 per gallon in 2024.
Housing costs, especially rents, jumped by 24% from January 2020 to mid-2024. The surge was more severe in certain metro areas like Tampa and Atlanta, where rents rose by over 45%. Energy costs followed a similar trend, with electricity prices climbing up to 66% higher in some regions.
Interest rates saw a roller-coaster ride as well. While mortgage rates were historically low at the start of 2020, the Federal Reserve’s aggressive rate hikes to tame inflation pushed them over 7% by 2023, significantly increasing the cost of borrowing.
Energy prices, including electricity and natural gas, also surged due to supply disruptions and increased global demand. In places like the Bay Area, electricity prices went up by nearly two-thirds compared to early 2020.
Home goods like furniture experienced inflation of over 15%, reflecting both increased material costs and higher shipping fees during the pandemic.
Clothing prices had a more moderate increase, up around 8% since 2020. The category didn’t experience as steep a rise as other essentials, partly due to changing consumer behavior and reduced demand for formal wear.
Finally, restaurant dining became noticeably more expensive. Eating out saw price hikes of 24% over this period, with rising labor and ingredient costs being major contributors.
Overall, inflation since 2020 has been uneven, with essentials like housing, energy, and food experiencing some of the steepest increases, while items like electronics and some apparel saw smaller changes.
Data obtained from Pew Research.
