Numbers that matter right now

The US Consumer Price Index rose 2.4% in early 2026, but that number understates what most households are actually experiencing. Grocery prices, insurance premiums, and housing costs have all risen faster than the headline figure. For a household earning $75,000 a year, a 2.4% inflation rate means roughly $1,800 in lost purchasing power annually — even if your salary stayed the same.

The situation is made more complicated by the tariff-driven price increases expected through 2026. Major retailers and consumer goods companies have already announced price increases of 3–8% on imported goods. For households that buy electronics, clothing, or appliances, the effective inflation rate on those categories is significantly higher than 2.4%.

The most important number to know isn't the headline inflation rate — it's your personal inflation rate, which depends on what you actually spend money on. Use our Inflation Impact Calculator to find out whether your raise this year actually put you ahead, kept you even, or left you quietly falling behind.

When the US imposed 145% tariffs on Chinese imports in 2025, many business owners assumed it meant prices would roughly double. The reality is more nuanced — and in some cases more painful. The tariff is applied to the declared customs value of goods, which typically includes the cost of the product plus shipping. That means a $5,000 order of goods shipped from China with $400 in freight costs now carries a tariff of roughly $7,830.

For small businesses that built their supply chains around Chinese manufacturing over the past decade, the math has changed dramatically. Many are now exploring alternatives in Vietnam (46% tariff), India (26%), or Mexico (varies by product under USMCA). Each option carries its own cost structure and lead time tradeoffs.