Where Inflation Has Hit the Hardest, 2000-2025
March 3, 2026
Affordability for key essentials remains a sticky issue in the United States. This information shows the cumulative rate of inflation across key goods and services in the U.S. between 2000 and September 2025.
Price Changes of Consumer Goods & Services
Inflation doesn’t affect everything in the same way, as essential services have seen the biggest price increases since 2000.
From 2000 to 2025:
Hospital Services +275%
College Tuition & Fees +196%
Child Care +185%
Medical Care +129%
Housing +111%
Food & Beverages +104%
All U.S. Items +92%
New & Used Vehicles +25%
Furniture +9%
Clothing +2%
Cellphone Services -43%
Toys -74%
Computer Software -75%
TVs -98%
Information created by Visual Capitalist; data from U.S. Bureau of Labor Statistics, September 2025
Items with the highest inflation
Hospital services have consistently outpaced inflation over the past several decades, with costs rising a stunning 275% since 2000. For perspective, hospital services increased 6.9% annually as of June 2024, faster than nursing homes (6%), prescription drugs (2.4%), and overall inflation (3%). Today, nearly one in five dollars spent in the U.S. economy goes toward health care, up from one in 20 in 1960.
College tuition and fees have also skyrocketed, rising 196% since 2000. Factors driving up costs include the hiring of more faculty and increased spending to attract students. Additionally, state funding has seen a long-term downward trend, meaning that public colleges must rely more on tuition from students to fund operations.
Housing inflation has jumped 111%, compared to a 92% increase for all U.S. items. When interest rates hovered near 0% in 2020 during the pandemic, it turbocharged housing demand, leading prices to spike to multiple record highs, even as interest rates increased.
More broadly, prices for essential services have significantly outpaced overall inflation, fueled by consolidation and labor-intensive operations.
Items with the lowest inflation
Conversely, the inflation rate on some items is below the overall inflation rate, such as for new and used vehicles at 25%, averaging an annual increase of less than a percent. Like the housing market, however, prices for vehicles increased notably over the pandemic amid supply chain bottlenecks. On the other hand, software has seen a clear deflationary trend, driven by the rise of cloud computing and subscription models. TV prices are 98% lower than they were in 2000, thanks to technological advancements and rising manufacturing efficiency.
Source:
Information created by Visual Capitalist; data from U.S. Bureau of Labor Statistics, September 2025
Disclaimers:
Prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Services, Inc
Providence Wealth Advisors, LLC (“PWA”) is a wholly owned affiliate of Providence Bank & Trust (“PB&T”). The investment products and services offered by PWA are independent of the products and services offered by PB&T and are not FDIC insured, may lose value, are not bank guaranteed and are not insured by any federal or state government agency. Investment products and services are offered by appropriately licensed investment advisor representatives, subject to the general oversight and authority of PWA.
To the extent that any client or prospective client utilizes any economic calculator or similar interactive device contained within or linked to the firm website, the client and/or prospective client acknowledges and understands that the information resulting from the use of any such calculator/device is not, and should not be construed in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from the firm or from any other investment professional.
Valuing Your Trust
If you’re not already a valued client of Providence Wealth Advisors, we encourage you to learn more. To schedule a no cost, no obligation conversation, contact us to learn more at your convenience.