SaaS inflation rate

SaaS prices continue to outpace CPI

SaaS costs remained elevated through Q4 2025, with year-over-year increases of 13.6% in October, 14.7% in November and 12.2% in December, averaging 13.5% growth for the quarter.

For a company that spent $1,000,000 on software in 2024, this meant an extra $122,000 by the end of 2025 – paying for the same tech stack, with no additional features, seats or services.

After initially peaking at 14% in May 2025, price growth eased slightly over the summer but soared again in November and – despite a more recent drop – continues to remain high, running at more than four times the US annual CPI of 2.7%.

While price increases are somewhat inevitable, companies can take targeted steps to mitigate the impact of software inflation and protect SaaS budgets in 2026. This involves proactively reviewing subscriptions, optimizing license usage and renegotiating contracts – all outlined in our SaaS Inflation Index Report.