The inflation rate in the United States declined significantly between June 2022 and January 2025, despite rising inflationary pressures towards the end of 2024. The peak inflation rate was recorded in June 2022, at 9.1 percent. In August 2023, the Federal Reserve's interest rate hit its highest level during the observed period, at 5.33 percent, and remained unchanged until September 2024, when the Federal Reserve implemented its first rate cut since September 2021. By January 2025, the rate dropped to 4.33 percent, signalling a shift in monetary policy. What is the Federal Reserve interest rate? The Federal Reserve interest rate, or the federal funds rate, is the rate at which banks and credit unions lend to and borrow from each other. It is one of the Federal Reserve's key tools for maintaining strong employment rates, stable prices, and reasonable interest rates. The rate is determined by the Federal Reserve and adjusted eight times a year, though it can be changed through emergency meetings during times of crisis. The Fed doesn't directly control the interest rate but sets a target rate. It then uses open market operations to influence rates toward this target. Ways of measuring inflation Inflation is typically measured using several methods, with the most common being the Consumer Price Index (CPI). The CPI tracks the price of a fixed basket of goods and services over time, providing a measure of the price changes consumers face. At the end of 2023, the CPI in the United States was 158.11 percent, up from 153.12 a year earlier. A more business-focused measure is the producer price index (PPI), which represents the costs of firms.

Graph and download economic data for U.S. Short-Term Interest Rates: Daily 1-Month Eurodollar Deposit Rate (DISCONTINUED) (WED1) from 1971-01-08 to 2016-10-07 about London, 1-month, deposits, interest rate, interest, rate, and USA.

Real interest rates describe the growth in the real value of the interest on a loan or deposit, adjusted for inflation. Nominal interest rates on the other hand show us the raw interest rate, which is unadjusted for inflation. If the inflation rate in a certain country were zero percent, the real and nominal interest rates would be the same number. As inflation reduces the real value of a loan, however, a positive inflation rate will mean that the nominal interest rate is more likely to be greater than the real interest rate. We can see this in the recent inflationary episode which has taken place in the wake of the Coronavirus pandemic, with nominal interest rates rising over the course of 2022, but still lagging far behind the rate of inflation, meaning these rate rises register as smaller increases in the real interest rate.

From 2003 to 2025, the central banks of the United States, United Kingdom, and European Union exhibited remarkably similar interest rate patterns, reflecting shared global economic conditions. In the early 2000s, rates were initially low to stimulate growth, then increased as economies showed signs of overheating prior to 2008. The financial crisis that year prompted sharp rate cuts to near-zero levels, which persisted for an extended period to support economic recovery. The COVID-19 pandemic in 2020 led to further rate reductions to historic lows, aiming to mitigate economic fallout. However, surging inflation in 2022 triggered a dramatic policy shift, with the Federal Reserve, Bank of England, and European Central Bank significantly raising rates to curb price pressures. As inflation stabilized in late 2023 and early 2024, the ECB and Bank of England initiated rate cuts by mid-2024, and the Federal Reserve also implemented its first cut in three years, with forecasts suggesting a gradual decrease in all major interest rates between 2025 and 2026. Divergent approaches within the European Union While the ECB sets a benchmark rate for the Eurozone, individual EU countries have adopted diverse strategies to address their unique economic circumstances. For instance, Hungary set the highest rate in the EU at 13 percent in September 2023, gradually reducing it to 6.5 percent by October 2024. In contrast, Sweden implemented more aggressive cuts, lowering its rate to 2.25 percent by February 2025, the lowest among EU members. These variations highlight the complex economic landscape that European central banks must navigate, balancing inflation control with economic growth support. Global context and future outlook The interest rate changes in major economies have had far-reaching effects on global financial markets. Government bond yields, for example, reflect these policy shifts and investor sentiment. As of June 2024, the United States had the highest 10-year government bond yield among developed economies at 4.09 percent, while Switzerland had the lowest at 0.69 percent. These rates serve as important benchmarks for borrowing costs and economic expectations worldwide.

Graph and download economic data for 90-Day AA Nonfinancial Commercial Paper Interest Rate (CPN3M) from Jan 1997 to Feb 2025 about AA, commercial paper, 3-month, nonfinancial, commercial, interest rate, interest, rate, and USA.

While interest rates in the United States declined three times by late 2024, average credit card interest rates did not immediately follow suit. This reveals itself when comparing the Federal Reserve interest rate against the APR, or annual percentage rates, of credit cards issued by commercial banks. The APR reached a record high in the country in 2024, likely adding to the growing credit card debt in the United States. This was below the APR of credit cards in a country like Brazil, however. It is expected that the credit card interest rates will continue to need time to catch up with the Fed interest rate.

Throughout 2022, central bank benchmark interest rates were hiked in most Asia-Pacific countries and territories. The State Bank of Pakistan set the highest interest rate in the region throughout the year, raising it from 9.75 percent in January to 15 percent as of October 2022. September 2022 saw the central banks of all Southeast Asian economies as well as India and Taiwan raise benchmark interest rates in order to curb inflation.

In January 2025, prices had increased by three percent compared to January 2024 according to the 12-month percentage change in the consumer price index — the monthly inflation rate for goods and services in the United States. The data represents U.S. city averages. In economics, the inflation rate is a measure of the change in price level over time. The rate of decrease in the purchasing power of money is approximately equal. A projection of the annual U.S. inflation rate can be accessed here and the actual annual inflation rate since 1990 can be accessed here. InflationOne of the most important economic indicators is the development of the Consumer Price Index in a country. The change in this price level of goods and services is defined as the rate of inflation. The inflationary situation in the United States had been relatively severe in 2022 due to global events relating to COVID-19, supply chain restrains, and the Russian invasion of Ukraine. More information on U.S. inflation may be found on our dedicated topic page. The annual inflation rate in the United States has increased from 3.2 percent in 2011 to 8.3 percent in 2022. This means that the purchasing power of the U.S. dollar has weakened in recent years. The purchasing power is the extent to which a person has available funds to make purchases. According to the data published by the International Monetary Fund, the U.S. Consumer Price Index (CPI) was about 258.84 in 2020 and is forecasted to grow up to 325.6 by 2027, compared to the base period from 1982 to 1984. The monthly percentage change in the Consumer Price Index (CPI) for urban consumers in the United States was 0.1 percent in March 2023 compared to the previous month. In 2022, countries all around the world are experienced high levels of inflation. Although Brazil already had an inflation rate of 8.3 percent in 2021, compared to the previous year, while the inflation rate in China stood at 0.85 percent.

Graph and download economic data for Interest Rates: 3-Month or 90-Day Rates and Yields: Certificates of Deposit: Total for United States (IR3TCD01USM156N) from Jun 1964 to Dec 2023 about CD, 3-month, yield, interest rate, interest, rate, and USA.

Canada's inflation rate experienced significant fluctuations from 2018 to 2025. Inflation peaked at 8.1 percent in June 2022 before steadily declining to 1.9 percent by January 2025. In response to rising inflation between 2020 and 2022, the Bank of Canada implemented aggressive interest rate hikes. The bank rate reached a maximum of 5.25 percent in July 2023 and remained stable until June 2024. As inflationary pressures eased in the second half of 2024, the central bank reduced interest rates to 3.5 percent in December 2024. This pattern reflected broader global economic trends, with most advanced and emerging economies experiencing similar inflationary challenges and monetary policy adjustments. Global context of inflation and interest rates The Canadian experience aligns with the broader international trend of central banks raising policy rates to combat inflation. Between 2021 and 2023, nearly all advanced and emerging economies increased their central bank rates. However, a shift occurred in the latter half of 2024, with many countries, including Canada, beginning to lower rates. This change suggests a new phase in the global economic cycle and monetary policy approach. Notably, among surveyed countries, Russia maintained the highest interest rate in early 2025, while Japan had the lowest rate. Comparison with the United States The United States experienced a similar trajectory in inflation and interest rates. U.S. inflation peaked at 9.1 percent in June 2022, slightly higher than Canada's peak. The Federal Reserve responded with a series of rate hikes, reaching 5.33 percent in August 2023. This rate remained unchanged until September 2024, when the first cut since September 2021 was implemented. In contrast, Canada's bank rate peaked at 5.25 percent and began decreasing earlier, with cuts in June and July 2024. These differences highlight the nuanced approaches of central banks in managing their respective economies amid global inflationary pressures.

Between January 2018 and February 2025, the United Kingdom's consumer price inflation rate showed notable volatility. The rate hit its lowest point at 0.5 percent in August 2020 and peaked at 9.6 percent in October 2022. By September 2024, inflation had moderated to 2.6 percent, but the following months saw inflation increase again. The Bank of England's interest rate policy closely tracked these inflationary trends. Rates remained low at 0.5-0.75 percent until April 2020, when they were reduced to 0.1 percent in response to economic challenges. A series of rate increases followed, reaching a peak of 5.25 percent from August 2023 to July 2024. The central bank then initiated rate cuts in August and November 2024, lowering the rate to 4.75 percent, signaling a potential shift in monetary policy. In February 2025, the Bank of England implemented another rate cut, setting the bank rate at 4.5 percent. Global context of inflation and interest rates The UK's experience reflects a broader international trend of rising inflation and subsequent central bank responses. From January 2022 to July 2024, advanced and emerging economies alike increased their policy rates to counter inflationary pressures. However, a shift began in late 2024, with many countries, including the UK, starting to lower rates. This change suggests a potential new phase in the global economic cycle and monetary policy approach. Comparison with other major economies The UK's monetary policy decisions align closely with those of other major economies. The United States, for instance, saw its federal funds rate peak at 5.33 percent in August 2023, mirroring the UK's rate trajectory. Similarly, central bank rates in the EU all increased drastically between 2022 and 2024. These synchronized movements reflect the global nature of inflationary pressures and the coordinated efforts of central banks to maintain economic stability. As with the UK, both the U.S. and EU began considering rate cuts in late 2024, signaling a potential shift in the global economic landscape.

Interbank Rate in Chile remained unchanged at 4.92 percent on Monday March 24. This dataset provides - Chile Overnight Interbank Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Euro Area - HICP - monthly data (annual rate of change) was 2.50% in January of 2025, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Euro Area - HICP - monthly data (annual rate of change) - last updated from the EUROSTAT on March of 2025. Historically, Euro Area - HICP - monthly data (annual rate of change) reached a record high of 10.60% in October of 2022 and a record low of -0.60% in January of 2015.

August 2024 marked a significant shift in the UK's monetary policy, as it saw the first reduction in the official bank base interest rate since August 2023. This change came after a period of consistent rate hikes that began in late 2021. In a bid to minimize the economic effects of the COVID-19 pandemic, the Bank of England cut the official bank base rate in March 2020 to a record low of 0.1 percent. This historic low came just one week after the Bank of England cut rates from 0.75 percent to 0.25 percent in a bid to prevent mass job cuts in the United Kingdom. It remained at 0.1 percent until December 2021 and was increased to one percent in May 2022 and to 2.25 percent in October 2022. After that, the bank rate increased almost on a monthly basis, reaching 5.25 percent in August 2023. It wasn't until August 2024 that the first rate decrease since the previous year occurred, signaling a potential shift in monetary policy. Why do central banks adjust interest rates? Central banks, including the Bank of England, adjust interest rates to manage economic stability and control inflation. Their strategies involve a delicate balance between two main approaches. When central banks raise interest rates, their goal is to cool down an overheated economy. Higher rates curb excessive spending and borrowing, which helps to prevent runaway inflation. This approach is typically used when the economy is growing too quickly or when inflation is rising above desired levels. Conversely, when central banks lower interest rates, they aim to encourage borrowing and investment. This strategy is employed to stimulate economic growth during periods of slowdown or recession. Lower rates make it cheaper for businesses and individuals to borrow money, which can lead to increased spending and investment. This dual approach allows central banks to maintain a balance between promoting growth and controlling inflation, ensuring long-term economic stability. Additionally, adjusting interest rates can influence currency values, impacting international trade and investment flows, further underscoring their critical role in a nation's economic health. Recent interest rate trends Between 2021 and 2024, most advanced and emerging economies experienced a period of regular interest rate hikes. This trend was driven by several factors, including persistent supply chain disruptions, high energy prices, and robust demand pressures. These elements combined to create significant inflationary trends, prompting central banks to raise rates in an effort to temper spending and borrowing. However, in 2024, a shift began to occur in global monetary policy. The European Central Bank (ECB) was among the first major central banks to reverse this trend by cutting interest rates. This move signaled a change in approach aimed at addressing growing economic slowdowns and supporting growth.

As of October 2024, the United States government has a monthly interest rate of 3.3 percent on its debt, continuing an upward trend in interest rates that began at the beginning of 2022. In April 2024, U.S. debt reached 34.62 trillion U.S. dollars.

From March 2020 to January 2021, the monthly change in the Consumer Price Index (CPI) in Sweden fluctuated between -0.4 and 0.7 percent. However, through most of 2021, the monthly change in the CPI was constantly positive, albeit between 0.1 and 0.5 percent. Except for January, it continued to be positive through 2022, with increases as high as 1.8 percent in March and August, and above two percent in December. It then fluctuated more through the first months of 2023. Post-COVID-19 effects and Russia's invasion of Ukraine caused high inflation rates in Sweden and several other countries in 2022.

In September 2024, the hiring rate in the United States was at 3.5 percent for total nonfarm industries. The seasonally adjusted total separations rate was at 3.3 percent. The data are seasonally adjusted. The separations figure includes voluntary quits, involuntary layoffs and discharges, and other separations, including retirements. Total separations is also referred to as turnover.

This layer contains the latest 14 months of unemployment statistics from the U.S. Bureau of Labor Statistics (BLS). The data is offered at the nationwide, state, and county geography levels. Puerto Rico is included. These are not seasonally adjusted values.The layer is updated monthly with the newest unemployment statistics available from BLS. There are attributes in the layer that specify which month is associated to each statistic. Most current month: November 2024 (preliminary values at the county level)The attributes included for each month are:Unemployment rate (%)Count of unemployed populationCount of employed population in the labor forceCount of people in the labor forceData obtained from the U.S. Bureau of Labor Statistics. Data downloaded: February 3, 2025Local Area Unemployment Statistics table download: https://www.bls.gov/lau/#tablesLocal Area Unemployment FTP downloads:State and CountyNationData Notes:This layer is updated automatically when the BLS releases their most current monthly statistics. The layer always contains the most recent estimates. It is updated within days of the BLS's county release schedule. BLS releases their county statistics roughly 2 months after-the-fact. The data is joined to 2021 TIGER boundaries from the U.S. Census Bureau.Monthly values are subject to revision over time.For national values, employed plus unemployed may not sum to total labor force due to rounding.As of the January 2022 estimates released on March 18th, 2022, BLS is reporting new data for the two new census areas in Alaska - Copper River and Chugach - and historical data for the previous census area - Valdez Cordova.To better understand the different labor force statistics included in this map, see the diagram below from BLS:

The annual monthly inflation rate in the Organization for Economic Co-Operation and Development (OECD) increased steadily from February 2021 to October 2022, when the inflation rate reached 10.7 percent compared to the same month the previous year. However, it has been slowing slightly since, dropping to 5.4 percent as of July 2024. The world saw rising inflation through 2022 and 2023, driven by an aftermath of the COVID-19 pandemic and further spurred by Russia's invasion of Ukraine in February 2022.

The Consumer Price Index gauges the price changes in a basket of goods and services representative of Mexican households' consumption. As of August 2024, the CPI had increased 4.99 percentage points compared to the same month of the previous year. Despite some fluctuations, the monthly inflation rate in the country has been experiencing an overall downward trend since August 2022. Different forms of measuring inflation The National Institute of Statistics, Geography, and Informatics (INEGI) measures price variations considering a total of 299 goods and services that encompass the most representative goods in rural and urban areas of the country. From the second half of June 2018 to May 2024, the accumulated CPI was around 134.09 points, representing price increases of over 34 percent in almost six years. Nonetheless, not all categories of goods and services increased at the same rate, as of June 2024, food and non-alcoholic beverages recorded the highest CPI with 155 points, followed by restaurants and hotels.
Consumer’s perception Consumers in Mexico had experienced rising prices differently, for example, people older than 55 years old had a higher perceived level of inflation in groceries than any other age group. Groceries were the second category with the highest perceived inflation, only behind restaurants, with almost 70 percent of Mexicans reporting high increases. As well as different perceptions, consumers decide to take varying alternatives to cope with the increases, the most common were paying more attention to prices, changing brands of certain products, or reducing consumption.