Cloud computing costs in the United States have been steadily rising, with a year-over-year price increase of 3.2% reported in August 2023 for data processing, hosting, and related services. This trend began in September 2022 and is driven by factors such as inflation, IT modernization, and the emergence of generative AI. Higher wages, increased energy demands, and generative AI are among the factors contributing to rising cloud costs, but usage and poor cost management are significant drivers as well. Government agencies are dedicating more of their budgets to cloud technology, and waste, or unused cloud resources, can substantially increase costs. While cloud inflation is a genuine concern, it is part of a recurring economic cycle in the cloud industry. Managing costs and optimizing cloud resource usage remain essential challenges for organizations.