U.S. Inflation Report: Consumer Prices Hold at 2.7% in December, Markets React to CPI Data

The latest U.S. inflation report released Tuesday shows that consumer prices in December 2025 held steady, with the Consumer Price Index (CPI) rising **2.7% year‑over‑year**, matching November’s figure and economists’ expectations. This suggests price growth remains elevated but stable, easing slightly from earlier in the year while staying above the Federal Reserve’s 2% target. On a monthly basis, overall CPI climbed about 0.3%, and core CPI — which excludes volatile food and energy prices — rose 2.6% annually, slightly below forecasts and pointing to softer inflationary pressures in underlying categories. Despite the steadiness, essential costs such as housing, food, and medical care continued to climb, contributing to ongoing affordability challenges for consumers. Market reaction was mixed: some equity indices held steady, while bond yields shifted as traders weighed inflation data against expectations for future Federal Reserve policy. Politically, President Trump hailed the inflation figures publicly, using the report to push for interest rate cuts, even as concerns about the Federal Reserve’s independence — including a Justice Department probe involving Fed Chair Jerome Powell — created additional economic uncertainty. The CPI report underscores that while inflation has moderated from peak levels, price growth remains persistent and will continue to influence financial markets and central‑bank policy decisions throughout 2026. #USInflation #CPIReport #FederalReserve #EconomicData #SlimScan #GrowthStocks #CANSLIM