Have wages kept up with inflation since 2020?

Barely. Median household income rose from $67,521 in 2020 to $83,592 in 2025, an increase of about 23.8%. But cumulative inflation over the same period was roughly 25.7%, meaning real purchasing power has actually declined slightly. The average American can buy less with their paycheck than they could in 2020.

What got more expensive the fastest since 2020?

Auto insurance leads at +55%, followed by eggs (+69% from pre-pandemic, though down from a 2025 peak), bread (+53%), rent in major cities (+36%), electricity (+31-37%), groceries overall (+29.4%), and gas (+33-38%). Healthcare premiums are also surging, with ACA marketplace premiums up 21.7% in 2026 alone.

Has anything gotten cheaper since 2020?

Yes. Electronics have dropped significantly: TVs are down roughly 40%, smartphones 12-14%, and computers about 7.5%. Toys are down 9%, airfares are about 8% below pre-pandemic levels, and home linens like bedsheets and towels have fallen around 10%. Post-pandemic supply chain recovery drove these declines.

How does US inflation compare to other countries since 2020?

The US has experienced roughly 23-26% cumulative inflation since 2020, similar to the UK (20-25%, which peaked at a 41-year high of 11.1% in October 2022) and Australia (22%). Canada fared slightly better at 19-20%, while the Eurozone saw 18-22%. As of early 2026, the Eurozone has the lowest current rate at 1.9%.

What is the Federal Reserve interest rate in 2026?

The Federal Reserve held its target rate at 4.25-4.50% at the March 2026 FOMC meeting. This is dramatically higher than the near-zero rate (0.05%) in 2020, when the Fed slashed rates during COVID. The rate peaked at 5.33% in 2023 before the Fed began cutting in late 2024.

The 2026 Cost of Living Calculator: How Much More Are You Paying vs 2020?

Q: How much has the cost of living increased since 2020?

Cumulative inflation from January 2020 to early 2026 is approximately 25.7%, according to the Bureau of Labor Statistics CPI data. That means $100 worth of goods in 2020 now costs about $125.67. Some categories far exceed that average: auto insurance is up 55%, eggs are up 69%, and rent in major cities has jumped 36%.

Since January 2020, cumulative inflation in the United States has reached 25.7%, according to Bureau of Labor Statistics CPI data. That means $100 worth of goods in 2020 now costs about $125.67. Your auto insurance is up 55%. A dozen eggs costs 69% more. Rent in major cities has jumped 36%. And despite nominal pay raises, real wages have barely moved.

Here is a category-by-category breakdown of exactly how much more everything costs, how your income compares, and what (if anything) actually got cheaper.

The Big Picture: 25.7% Cumulative Inflation

The average annual inflation rate from 2020 to 2026 has been 3.88% — more than double the roughly 10% cumulative inflation seen in the five years before the pandemic (BLS). Inflation peaked at 9.1% in June 2022, the highest in over 40 years, driven by pandemic supply chain disruptions, stimulus spending, and the energy crisis.

As of February 2026, year-over-year inflation has cooled to 2.4% — approaching the Fed's 2% target. But the damage is cumulative. Prices don't go back down when inflation slows; they just stop rising as fast.

Category-by-Category: What Costs More in 2026

Groceries: +29.4%

Food-at-home prices have risen 29.4% from March 2020 to December 2025 (BLS). The USDA projects an additional 2.5% increase in 2026. Here's what specific staples look like:

Eggs are the standout: they spiked above $6 per dozen in 2025 during avian flu outbreaks before falling 40% — but they are still 69% above pre-pandemic levels (FRED, NPR).

Rent: +36% Average (Up to +53% in Miami)

Rents across major U.S. cities have surged an average of 36% since 2020. HUD data shows one-bedroom units specifically jumped 40.8% from 2020 to 2025, nearly double overall inflation. The average U.S. monthly rent is now approximately $1,995 (Zillow, February 2026).Cities hit hardest:

Miami: +53% (from $1,725 to $2,645/month)
Tampa: +50% (+$664/month)
Atlanta: among the fastest Sun Belt increases

Cities with lowest growth:

San Francisco: +13%
Austin: +14%

Auto Insurance: +55%

55% since February 2020

Gas: +33-38%

$2.19 per gallon

$2.91/gallon

unit converter

Electricity: +31-37%

13.2 cents per kWh

17.2-18.1 cents per kWh

energy consumption and electricity costs

Healthcare: Premiums Surging

$5.3 trillion

Employer-sponsored insurance costs up 9% — the highest increase in 15 years
ACA Marketplace premiums up 21.7% on average (partly due to expiring enhanced tax credits)
Family PPO coverage: employees facing roughly $8,900/year in paycheck deductions (Peterson-KFF)

Used Cars: +27.6% (But Cooling)

$23,668

$30,202

Has Your Income Kept Up?

not quite.

Nominal income rose 23.8%, but cumulative inflation hit 25.7% — meaning the average American has slightly less purchasing power than in 2020 (Census Bureau, BLS). Recent data shows real wages finally growing again at about +1.8% year-over-year as of February 2026, translating to roughly $23 more per week in actual buying power.The disparity is worse for lower-income households. Tariffs alone hit the bottom 20% of earners (under $29,000) at 6.2% of income versus 1.7% for the top 1% (Yale Budget Lab).

What Actually Got Cheaper

Not everything went up. Post-pandemic supply chain recovery pushed several categories below 2020 prices:

TVs: Down ~40%

Smartphones: Down 12-14%

Computers: Down ~7.5%

Toys: Down ~9%

Airfares: Down ~8% vs pre-pandemic

Home linens (bedsheets, towels): Down ~10%

Clothing/footwear: Only single-digit increases since 2019

The pattern: manufactured consumer goods where global supply recovered faster than demand fell are cheaper. Essential services (healthcare, insurance, rent, utilities) where supply is constrained are much more expensive.

How the US Compares Globally

Item	2020 Price	2026 Price	Change
Eggs (dozen, Grade A)	$1.48	$2.50	+69%
Bread (white, per lb)	$1.20	$1.83	+53%
Milk (whole, per gallon)	$3.27	$4.07	+24%
Metric	2020	2025-2026	Change
Median Household Income	$67,521	$83,592	+23.8%
Cumulative Inflation	—	—	+25.7%
Real Wage Growth (net)	—	—	~0% (flat)
Country	Cumulative Inflation (2020-2025)	Current Rate (Early 2026)
United States	~23-26%	2.4%
United Kingdom	~20-25%	3.0%
Australia	~22%	~2.6%
Canada	~19-20%	~2.1%
Eurozone	~18-22%	1.9%

The UK experienced the highest peak inflation at 11.1% in October 2022 — a 41-year record. The Eurozone currently has the lowest rate. Use our currency converter to see how exchange rate movements compound these differences when sending money internationally.

The Interest Rate Factor

The Federal Reserve's response tells the story:

2020: Emergency rate cut to 0.05% (near zero) during COVID

2023: Aggressive hikes pushed rates to 5.33% to fight inflation

March 2026: Held steady at 4.25-4.50% for the second consecutive meeting

Higher interest rates mean more expensive mortgages (the average 30-year rate was around 2.7% in 2020 versus 6.5-7% in 2026), auto loans, and credit card debt. A $300,000 mortgage costs roughly $600 more per month at 7% than it did at 2.7%.

What You Can Do About It

Track your actual spending — the CPI is an average. Your personal inflation rate depends on where you live, what you buy, and whether you rent or own. Build a simple budget to see your real numbers.

Refinance if rates drop — the Fed is expected to continue cutting in 2026. If mortgage rates dip below your current rate, refinancing could save hundreds per month.

Shop auto insurance aggressively — with a 55% cumulative increase, switching providers can save 20-30%. Get quotes every 6-12 months.

Buy electronics now — TVs, computers, and phones are at multi-year lows. If you need them, prices may not stay this low as tariffs expand.

Compare exchange rates before traveling — the dollar's purchasing power varies dramatically by destination. Use Convertz to check real-time rates and find where your money stretches furthest.

Lock in energy rates — if your utility offers fixed-rate plans, consider locking in while rates stabilize.

All data sourced from the Bureau of Labor Statistics, Federal Reserve Economic Data (FRED), USDA Economic Research Service, Census Bureau, Energy Information Administration, and cited research institutions. Figures are as of March 2026 and subject to revision.

Disclaimer

This article is for informational purposes only and does not constitute financial or investment advice. Economic data and projections are based on publicly available research and may change. Always verify current prices and rates before making financial decisions.

Here is a category-by-category breakdown of exactly how much more everything costs, how your income compares, and what (if anything) actually got cheaper.

The Big Picture: 25.7% Cumulative Inflation