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Annual inflation hit 2.7 percent in December as food costs rose
Food prices rose 3.1% year-over-year and shelter costs increased 0.4% in December, keeping inflation steady above the Federal Reserve's 2% target, government data showed.
- On Tuesday, the Labor Department's Bureau of Labor Statistics said U.S. consumer prices rose 0.3% last month, and the 12-month inflation rate was 2.7%.
- A six-week government shutdown suspended price-collection and prevented calculation of some October yearly figures, forcing the Bureau of Labor Statistics to use carry-forward rental estimates and November data collection with holiday discounts that may have biased November lower.
- Price gains were led by shelter rising 0.4%, food rising 0.7%, energy climbing 0.3%, and core CPI excluding food and energy up 0.2%.
- The next Fed meeting is scheduled for Jan. 27 to 28, with the December CPI helping inform the Federal Reserve's decision as CME FedWatch showed a 95% chance the Fed would hold rates.
- Amid affordability concerns, Seema Shah noted that 'Inflation remains a challenge, with core PCE inflation holding above the Federal Reserve's 2% target for 55 months,' raising long-term questions about monetary policy. The DOJ's subpoenas related to Powell's testimony have added scrutiny to the Fed's independence.
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Inflation Remains Above Target in December
Data released Tuesday by the Bureau of Labor Statistics showed inflation holding at a 2.7 percent annual rate in December, reflecting a continued rise in housing and food costs. Food costs rose sharply in December, climbing 0.7 percent on the month and 3.1 percent from a year earlier. Grocery prices were up 2.4 percent annually, while the price for dining-out rose 4.1 percent over the past year. Core inflation, which does not take into account …
·Washington, United States
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The consumer price index rose in December by 2.7% over one year, a steady pace compared to November.
·Montreal, Canada
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The US Consumer Price Index remained at 2,7 % in December 2025, at the same level as in November.
Coverage Details
Total News Sources161
Leaning Left18Leaning Right22Center77Last UpdatedBias Distribution66% Center
Bias Distribution
- 66% of the sources are Center
66% Center
15%
C 66%
R 19%
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