Peter Lewis · FounderJune 15, 20267 min read

How often should you raise prices? The BLS CPI data through 2026

Cumulative US inflation has run roughly 5-7% over the last 18 months per BLS CPI data. If your salon prices haven't moved on at least an annual cadence, your real take-home has shrunk. Here's the inflation-floor math.

A common pattern among independent stylists: prices set once when going out on your own, then left untouched for years. The reasons are familiar — fear of losing regulars, no clear trigger to raise, no obvious framework for when to raise.The Bureau of Labor Statistics gives you a clear framework. The Consumer Price Index data tells you the floor below which your real take-home is shrinking. This post is the inflation-floor math through 2026.The CPI numbers, plainlyPer the BLS CPI release:

Period	All-items CPI change	Notes
Dec 2024 → Dec 2025	+2.7%	BLS year-end summary
12 months ending Jan 2026	+2.4%	BLS Jan release
12 months ending April 2026	+3.8%	Highest YoY since May 2023
Cumulative ~18 mo to mid-2026	~5-7%	Compounded across the periods above

BLS Consumer Price Index for All Urban Consumers, all items. The April 2026 acceleration was driven significantly by energy costs.

The April 2026 figure marks the highest year-over-year inflation reading since May 2023, per the BLS. The acceleration was driven heavily by energy costs (which jumped ~17.9% YoY in that period), but the all-items measure that affects your supply costs and your booth rent is what matters for pricing decisions.What this means for a stylist who hasn't raised pricesThe math is simple. If your services cost the same number of dollars today that they cost 18 months ago, those dollars now buy meaningfully less:5% less purchasing power on the conservative end.7% less purchasing power on the higher-acceleration estimate.For a stylist with $5,000/month in service revenue who hasn't raised prices in 18 months, that's roughly $250-$350/month in real take-home value lost — purely to inflation, before any other factor.Annualized, that's $3,000-$4,200/year of purchasing power gone, on a static price menu.

Static menu, real take-home today$4,700per mo
Inflation-matched menu, same volume$5,300per mo

Illustrative — a $5,000/mo book with prices that haven't moved in 18 months has lost roughly the difference in real purchasing power. Substitute your real numbers; the percentage is the relevant input.

The point isn't that you lost money. You earned the same dollar amount. The point is that the same dollar amount no longer pays your rent the way it used to, because your booth rent, supplies, insurance, and personal expenses all moved with the CPI.What the industry is doing about pricingPer Square's 2025 research on the beauty industry, 71% of beauty business owners planned to raise prices in 2025. That's a broadly-shared response to the inflation backdrop. The stylists who haven't raised aren't being "more loyal to clients" — they're falling behind a market norm that's already pricing in the inflation.This matters because what feels like a price raise from your perspective often reads as catch-up from a client perspective. The client who has watched grocery prices, gas, and rent climb knows costs are up. A $20 increase on their $120 color reads as plausible, not unusual. The stylist who hasn't raised in 18+ months is the outlier, not the stylist who raises annually.A defensible cadenceAnnual is the right baseline, and the BLS data supports it:1. Annual raise of at least the trailing 12-month CPI. If the trailing 12-month CPI is 3%, raising prices by 3% (or more) is the floor — that's what keeps your real take-home flat, not what makes you more money.2. Layer additional raise above CPI for compensation growth. If you want your real take-home to grow, raise more than CPI. The $20 raise rule we wrote up here (The $20 raise rule) is one structural way to apply a meaningful raise — typically more than 3-4% on a single-service basis.3. Don't double up in the same year. Annual is the right cadence; biannual is fine; two raises within 12 months erodes trust regardless of how justified the inflation case is.4. Communicate the raise. A short text to regulars two weeks before the new prices kick in handles the relationship part. We have a template here: The $20 raise rule script.When the rule doesn't applyThree scenarios where the inflation-floor doesn't apply automatically:1. You raised in the last 12 months. You've already done it. Wait until next year.2. Your book is too new to absorb the relationship cost. If you're under 12 months in a new salon or area with a still-stabilizing client base, hold off until you have a 6-month retention pattern you can see.3. Your service quality has slipped. Raising prices on declining work is the path to losing clients who otherwise would have stayed. Fix the work first.Outside those exceptions, the BLS data gives you a clear floor: prices that don't move with inflation are prices that effectively went down.What this implies operationally

Check when you last raised prices
If it's over 12 months, you're due. If it's over 18, you're meaningfully behind the CPI per the data above.
Calculate the inflation floor
Trailing 12-month CPI is in the BLS release. That's your minimum raise to hold real take-home flat. Anything below it is a real-dollar decline.
Decide on the raise amount
CPI is the floor, not the ceiling. The $20 raise rule applied across every service typically lands meaningfully above CPI — which is the right call if you want your real take-home to grow, not just hold.
Send the heads-up text two weeks early
Don't surprise regulars at checkout. The script lives in the $20 raise post.
Update your booking page the day the new prices kick in
New clients should see the new prices from day one. Existing regulars get the heads-up text; the booking page just reflects the new menu.

What changes besides the dollar amountA subtle effect happens when you raise prices on the right cadence: your relationship with the work shifts. Charging more for the same cut makes you slightly more deliberate. The consultation gets more careful. Your work, marginally, gets better — not because you decided to be, but because the new price asks you to be.The bottom lineThe BLS CPI data gives a clear answer to "when should I raise prices": at least annually, by at least the trailing 12-month CPI. That's the floor.Stylists who don't raise on that cadence are absorbing the inflation gap themselves. Per Square's research, the broader industry has already moved — 71% of beauty business owners planned to raise prices in 2025.ReferencesU.S. Bureau of Labor Statistics. Consumer Price Index News Release. bls.gov/news.release/cpi.nr0.htmSquare (The Bottom Line). Salon Booking & Cancellation Policy Templates: 2025 Beauty Industry Pricing Trends. squareup.com/us/en/the-bottom-line/operating-your-business/salon-booking-cancellation-policy-templatesThe $20 raise rule — the tactical companion: when you do raise, how much, and the script for telling clients.Reading your bank statement like a stylist — the monthly system for spotting when a raise is overdue.How much do hair stylists actually make? The BLS data — the BLS published median and the booth-renter gap.Salon client retention: 70% vs. 45% — the retention side of the math; raising prices on a healthy retention curve compounds.