1
Lead with the data
Use CPI 3.8% in April 2026 rather than a vague 'costs are higher' complaint.
April 2026 Inflation Update
Last updated: May 2026The Consumer Price Index rose 3.8% year-over-year in April 2026, up from 3.3% in March 2026. If your raise was below 3.8%, your real purchasing power declined.
| Category | 12-Month Change |
|---|---|
| All Items (CPI) | +2.7% (Dec-Dec 2025) |
| All Items (Apr 2026 YoY) | +3.8% |
| Shelter (Housing) | +3.2% |
| Food Away from Home | +4.1% |
| Food at Home (Groceries) | +2.4% |
| Energy | +2.3% |
| Core CPI (ex-food & energy) | +2.6% |
Sources: BLS CPI 2025 in Review; BLS CPI April 2026.
Cost of Living Raise Calculator
Cost of Living Raise Calculator
See if your raise is actually a pay cut. With CPI at 3.8% in April 2026, many raises fail to keep pace with inflation. Calculate your real purchasing power and the salary you need to break even.
CPI data: Updated May 2026
BLS April 2026 release
Break-even on $75K+$2,850/year at 3.8%
Five-year CPI holeAbout +24.6%
Inflation vs. Wage Growth 2021-2026
Inflation vs. Wage Growth - 2021-2026
Wage growth has improved in some years, but inflation has still eaten into real purchasing power across the full five-year window.
| Year | CPI Change | Avg Wage Growth | Real Wage Change |
|---|---|---|---|
| 2021 | +7.0% | +4.7% | -2.3% |
| 2022 | +6.5% | +5.1% | -1.4% |
| 2023 | +3.4% | +4.4% | +1.0% |
| 2024 | +2.9% | +3.9% | +1.0% |
| 2025 | +2.7% | +3.8% | +1.1% |
| 2026 (Apr YoY) | +3.8% | ~3.5% est. | ~ -0.3% |
| 5-Year Cumulative | ~+24.6% | ~+23.5% | ~ -1.1% |
The 5-year reality: A worker earning $60,000 in 2021 needs approximately $74,760 in 2026 just to maintain the same purchasing power. FRED CPIAUCSL was 332.407 in April 2026.
Sources: BLS CPI 2025 in Review; BLS CPI April 2026; FRED CPIAUCSL.
Cost of Living Raise Calculator
Choose the inflation question you need answered
Raise vs. Inflation Calculator
Nominal raise
+3.0%
+$2,250/year
Inflation
-3.8%
April 2026 CPI
Real raise
-0.8%
-$600/year
In purchasing power terms
Your salary went from $75,000 to $77,250.
To keep the same purchasing power, you needed $77,850.
Shortfall: -$600/year (-$50/month).
Break-even raise needed: 3.8% (+$2,850).
After-tax impact (TX, Single):
Nominal take-home gain: +$1,583
Real take-home gain: -$422
Your raise is a real pay cut.
Your 3.0% raise is a real pay cut of 0.8% after inflation. You need at least 3.8% just to break even. Your purchasing power changed by -$600/year.
CPI History
Inflation History - CPI Annual Change 2020-2026
The 2021-2022 surge created the purchasing-power hole many workers are still trying to climb out of. The April 2026 readout shows inflation re-accelerating.
Cumulative impact: $100 of purchasing power in January 2021 requires approximately $124.60 today to buy the same goods and services.
Category Inflation
Where Inflation Hits Hardest - 2025 Category Breakdown
Headline CPI is one number. Household stress usually comes from specific categories: shelter, utilities, food, healthcare, and dining.
| Category | 2025 Change | Impact on $75K Household | Bar |
|---|---|---|---|
| Beverage materials (coffee, tea) | +11.8% | $180/year | |
| Utility gas service | +10.8% | $320/year | |
| Hospital & related services | +6.7% | $450/year | |
| Electricity | +6.7% | $280/year | |
| Food away from home | +4.1% | $520/year | |
| Shelter (housing/rent) | +3.2% | $1,440/year | |
| Medical care | +3.2% | $380/year | |
| Food (all) | +3.1% | $680/year | |
| All Items (CPI) | +2.7% | $2,025/year | |
| Core CPI (ex-food & energy) | +2.6% | - | |
| Energy (all) | +2.3% | $460/year | |
| Apparel | +0.6% | $60/year |
Shelter dominates: housing at +3.2% is often the largest household expense, so it contributes more pain than faster-growing small categories.
Break-Even Raise
What Raise Do You Need to Keep Up With Inflation?
A COLA raise is the raise required to stand still. Anything below it is a real pay cut.
Break-even raise
$2,850
3.8% = +$237.50/month or +$109.62/bi-weekly paycheck.
| Current Salary | Break-even at 2.7% | Break-even at 3.8% | Break-even at 5.0% |
|---|---|---|---|
| $40,000 | +$1,080/yr | +$1,520/yr | +$2,000/yr |
| $55,000 | +$1,485/yr | +$2,090/yr | +$2,750/yr |
| $75,000 | +$2,025/yr | +$2,850/yr | +$3,750/yr |
| $95,000 | +$2,565/yr | +$3,610/yr | +$4,750/yr |
| $120,000 | +$3,240/yr | +$4,560/yr | +$6,000/yr |
| $150,000 | +$4,050/yr | +$5,700/yr | +$7,500/yr |
CPI Data and Source Notes
The page is built around the April 2026 CPI release, the 2025 BLS review, and the April 2026 CPIAUCSL readout from FRED. The numbers are tuned to answer the real question: whether your raise preserved purchasing power.
Sources: BLS CPI 2025 in Review; BLS CPI April 2026; FRED CPIAUCSL; NerdWallet cost of living article.
How to Negotiate
How to Negotiate a COLA Raise - Using Inflation Data
Lead with BLS numbers, keep the conversation tied to purchasing power, and anchor your ask to the break-even number first.
2
Use your category
Shelter, groceries, utilities, or commuting costs make the inflation argument concrete.
3
Show the 5-year picture
If salary growth trailed cumulative inflation, show the real purchasing-power gap.
4
Request a specific COLA
Ask for break-even plus a modest real gain, not just a round number.
5
Ask for a COLA clause
A CPI-linked annual clause can prevent the same negotiation every year.
FAQ
Frequently Asked Questions
What is the current inflation rate in 2026?
The Consumer Price Index rose 3.8% year-over-year in April 2026, up from 3.3% in March 2026. For full-year 2025, CPI rose 2.7%, and the FRED CPIAUCSL index stood at 332.407 in April 2026.
What raise do I need to keep up with inflation in 2026?
To maintain purchasing power, your raise must match inflation. With CPI at 3.8%, a $75,000 salary needs a $2,850 annual raise just to break even.
How do I calculate my real raise after inflation?
Real raise percentage equals your raise percentage minus the inflation rate. A 3% raise with 3.8% inflation is a -0.8% real raise, which is a purchasing-power loss.
How much has inflation been since 2021?
Cumulative CPI inflation since 2021 is approximately 24.6% using the reference data on this page. A $60,000 salary in 2021 needs about $74,760 today to maintain similar purchasing power.
What is a cost of living adjustment (COLA)?
A COLA is a salary increase designed to offset inflation. It keeps purchasing power constant; it is not necessarily a real raise.
How do I compare salaries between cities?
Use the city comparison mode. Enter your current city, salary, and destination city. The calculator applies cost-of-living indices to estimate the equivalent salary in the new city.
Is a 3% raise good in 2026?
With CPI at 3.8% in April 2026, a 3% raise is a real pay cut of about 0.8%. It is close to break-even, but it does not fully protect purchasing power.
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