Consumer Price Index (CPI) — Year-over-Year vs S&P 500 Price-to-Earnings Ratio (Forward)
Consumer Price Index (CPI) — Year-over-Year is currently 2.8% (down -0.1%). S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x (down -1.20).
| Metric | Consumer Price Index (CPI) — Year-over-Year | S&P 500 Price-to-Earnings Ratio (Forward) |
|---|---|---|
| Current value | 2.8% | 20.3x |
| Previous reading | 2.9% | 21.5x |
| Change | -0.1% | -1.20 |
| Trend | down | down |
| Frequency | Monthly | Weekly |
| Source | Bureau of Labor Statistics | S&P Global |
| Last updated | 2026-03-12 | 2026-04-04 |
| Category | inflation | growth |
What Consumer Price Index (CPI) — Year-over-Year measures
The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a basket of goods and services. The year-over-year change is the most commonly cited measure of inflation.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed's comfort zone, but the pricing environment is stabilizing. Companies with strong pricing power can pass through cost increases; those in competitive markets face margin pressure. The Fed is unlikely to cut rates aggressively until CPI moves closer to 2%.
What S&P 500 Price-to-Earnings Ratio (Forward) measures
The forward price-to-earnings ratio measures the S&P 500 index price relative to expected earnings per share over the next 12 months. It is the most widely used valuation metric for the U.S. stock market.
The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'euphoric' valuations. For executives evaluating M&A, stock compensation, or capital market activity, current valuations suggest a market that is fairly valued to modestly expensive — not cheap, but not at bubble levels either.
Frequently asked
Consumer Price Index (CPI) — Year-over-Year is currently 2.8%, down -0.1% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
S&P 500 Price-to-Earnings Ratio (Forward) is currently 20.3x, down -1.20 from the previous reading. Source: S&P Global, updated weekly.
Inflation at 2.8% remains above the Federal Reserve's 2% target but has moderated significantly from the 2022 peak of 9.1%. For executives, this means input costs are still rising faster than the Fed' The S&P 500 forward P/E at 20.3x has declined from its recent highs but remains above the 25-year average of approximately 16.5x. Markets are pricing in solid earnings growth but are no longer at 'eup