US EditionAnnual 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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The US Consumer Price Index remained at 2,7 % in December 2025, at the same level as in November.
Inflation Holds at Nearly Half Biden Era Rate, ‘Core’ Rate Lowest Since March 2021
Inflation held steady at nearly half the Biden Administration’s rate in December, Consumer Price Index (CPI) data released Tuesday by the U.S. Bureau of Labor Statistics (BLS) show. Not only was the 12-month CPI increase of 2.7% unchanged from November’s 2.7% year-to-year rate, it was also cooler than economists had expected. Likewise, the “core” rate of inflation, which excludes volatile food and energy prices, remained at 2.6% - the lowest 12-…
U.S. consumer prices rise in December as food, rent costs jump | Honolulu Star-Advertiser
WASHINGTON >> U.S. consumer prices increased in December, lifted by higher costs for rents and food as some of the distortions related to the government shutdown that had artificially lowered inflation in November unwound, cementing expectations the Federal Reserve would leave interest rates unchanged this month.
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