Reality Index

Category

Transportation.

The all-in annual cost of owning and operating a car, per AAA — the bucket where Reality Index and CPI almost agree.

Transportation is the second-largest bucket in the Reality Index (17.3% weight). The all-in annual cost of vehicle ownership and operation — purchase, fuel, insurance, maintenance, finance, depreciation — has grown 3.92× from 1980 to 2025 per AAA's Your Driving Costs survey at 24,000 miles per year. That is almost exactly in line with CPI All Items at 3.91×.

The transportation story splits internally. Gasoline at the pump has underperformed CPI over 45 years (2.81× by 2023, the last EIA year we have). Vehicle prices, insurance, and maintenance combined — the AAA all-in cost — have approximately matched CPI. The headline transportation bucket uses the AAA composite because it captures everything families spend on getting around, not just fuel.

Transportation composite 1980 → 2025
3.92×
$100 in 1980 → $391 today
CPI All Items 1980 → 2025
3.91×
$100 in 1980 → $390 today
Transportation composite ran
0.2%
faster than CPI over 45 years
Transportation composite vs CPI, 1980 → 2025
Equal-weighted composite of category items · 1980 = 100
01002003004001001980198519901995200020052010201520202025Transportation composite392CPI All Items391
Transportation composite (Reality Index) CPI All Items (BLS official)

Individual items in this category

Each card below links to the full chart page for that item — including retail dollar series, BLS CPI subindex for that category, and the long-history backstop where available. Multiples shown are 1980-anchored unless the underlying data series doesn't extend that far back.

Gasoline

per gallon

2.81× 1980–2023

Methodology notes

Composite construction. AAA "Your Driving Costs" per-mile composite × 24,000 miles per year. AAA's survey is the industry-standard reference for total household vehicle cost. It includes fuel, maintenance, repairs, tires, insurance, license/registration/taxes, depreciation, and finance charges. The result is the all-in dollar cost of owning and operating a single vehicle, year by year from 1980 to 2025.

What this doesn't include. Public transit, airline travel, ride-share. Each is either small enough (transit, ride-share) or volatile enough (airline) that AAA's vehicle composite is the best single proxy for what households spend on transportation. Airline industry has its own methodology issues (unbundled fees, capacity reductions, seat-pitch compression) that CPI doesn't capture — see "what we don't measure".

Why gasoline alone underperforms. Real-dollar gasoline prices peaked in 2008 ($3.30/gallon nominal, equivalent to ~$5 in 2024 dollars) and have generally trended below that peak since. Fuel efficiency gains and US shale production have helped keep US gasoline prices below their inflation-adjusted historical average. The story is different in vehicle prices (which rose post-2020 due to supply chain disruption) and especially insurance (which has accelerated dramatically post-2020).