US Inflation Holds Steady at 2.7% in December 2025 | Quick Digest
US consumer prices increased 2.7% annually in December 2025, matching November's rate, while core inflation rose 2.6%. The Bureau of Labor Statistics released the data, with shelter and food costs being key drivers. This report is crucial for global economic outlook and central bank policies.
US Consumer Price Index (CPI) rose 2.7% year-over-year in December 2025.
Core CPI, excluding food and energy, increased 2.6% annually.
Shelter and food prices were the primary contributors to the monthly increase.
The data was released by the US Bureau of Labor Statistics on January 13, 2026.
The annual inflation rate remained stable compared to the previous month.
Core inflation was slightly below market expectations of 2.7%.
The United States Consumer Price Index (CPI) for December 2025 showed an annual increase of 2.7% for all items, marking a consistent rate with the previous month's reading. This data was officially released by the U.S. Bureau of Labor Statistics (BLS) on January 13, 2026. On a seasonally adjusted monthly basis, the CPI for All Urban Consumers (CPI-U) rose by 0.3% in December.
Core inflation, which excludes the more volatile food and energy components, increased 0.2% monthly and held steady at an annual rate of 2.6% in December, matching November's figures. This core inflation rate was slightly below market expectations, which had anticipated a 2.7% increase.
Key categories contributing to the overall inflation figures included shelter, which saw a 0.4% increase in December and was identified as the largest factor in the monthly all-items rise. Food prices also climbed, rising 0.7% for the month and standing 3.1% higher than a year ago. Energy prices experienced a 0.3% increase in December, resulting in a 2.3% rise over the last 12 months.
The December 2025 CPI report provides a clearer picture of inflation trends following a period of government shutdown-related disruptions, which had impacted earlier data collection and reporting for October and potentially skewed November's figures. This stability in inflation, albeit still above the Federal Reserve's 2% target, is closely watched by global markets and central banks, including for its potential implications on future interest rate decisions by the Federal Reserve.
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