Price changes worsened finances
58%
percent of adults
Inflation remained the dominant household concern.
Boundary Perception measure; not a household-specific price index.
The American Household Economy · 2026
Prices
Inflation as of mid-2026: CPI and PCE, core measures, the energy shock, and real earnings — with the difference between nominal and real values explained.
Data as of
Inflation as of mid-2026
Headline inflation stayed above the pre-pandemic norm, driven largely by energy. Core measures ran cooler than the headline.
Consumer Price Index inflation
3.5%
12-month percent change
Inflation remained above the recent pre-pandemic norm despite a June monthly decline.
Boundary National urban-consumer index; individual baskets differ.
Core CPI inflation
2.6%
12-month percent change
Underlying inflation was lower than headline inflation.
Boundary Excludes food and energy; not a cost-of-living measure for every household.
Energy-price inflation
15.7%
12-month percent change
Energy was the dominant source of headline inflation pressure.
Boundary Energy prices are volatile; June itself fell 5.7% month to month.
PCE inflation
4.1%
12-month percent change
The Federal Reserve's preferred broad price index accelerated.
Boundary May reference month; June PCE was scheduled after this report's cutoff.
Core PCE inflation
3.4%
12-month percent change
Core inflation remained above the Fed's 2% objective.
Boundary Excludes food and energy and is subject to revision.
Inflation measures compared
All five bars are the same kind of number, so they can be compared directly.
Denominator: 12-month percent change in each price index. Energy is a component of CPI, shown to explain the headline; it is not additive with the others.
| Series | 12-month percent change |
|---|---|
| Energy-price inflation | |
| PCE inflation | |
| Consumer Price Index inflation | |
| Core PCE inflation | |
| Core CPI inflation |
Nominal versus real
A nominal figure is measured in the dollars of its day. A real figure strips out inflation so that different years can be compared in constant purchasing power.
This is why pay can rise and stall at the same time. Nominal hourly earnings rose 3.5% over the year, but once 3.5% inflation is removed, real average hourly earnings grew only +0.1%. The paycheck is larger; what it buys is roughly unchanged.
No single index is anyone’s personal cost of living. CPI tracks a national urban-consumer basket; a household that drives a lot felt the 15.7% energy move far more than the headline suggests.