U.S. Inflation Report Shows Steady 2.7% CPI in December, Core Prices Cool Slightly

The U.S. Consumer Price Index (CPI) report for December 2025 showed that inflation remained steady at a 2.7% annual pace, aligning with November’s figures and economist expectations. On a monthly basis, consumer prices rose by 0.3%, consistent with forecasts. The data provide evidence that price growth, while still above the Federal Reserve’s long‑term 2% inflation target, is moderating. Core inflation, which excludes volatile food and energy prices, rose by 2.6% year‑over‑year — slightly below estimates and suggesting underlying price pressures could be easing. Monthly core inflation was also modest, reinforcing the view that inflation may be gradually cooling. :contentReference[oaicite:1]{index=1} Housing costs were the largest upward contributor in the CPI basket, with shelter rising more sharply than other categories. Food prices climbed 0.7% in December, while energy costs showed smaller increases. Some goods sectors, including communication and used vehicles, saw price declines. :contentReference[oaicite:2]{index=2} Market reactions were immediate: U.S. stock futures nudged higher and Treasury yields dipped, reflecting expectations that the Federal Reserve may hold interest rates steady in the near term. Financial markets are now pricing in a high probability of unchanged policy at the Fed’s upcoming January meeting, and some analysts see room for rate cuts later in 2026 if inflation continues to soften. :contentReference[oaicite:3]{index=3} The report also came amid lingering distortions from a prior government shutdown that disrupted price collection in October and November, complicating comparisons and data interpretation. Despite this, most economists view the December CPI as supporting a “pause” in interest rate adjustments, with inflation showing signs of peak and gradual deceleration. :contentReference[oaicite:4]{index=4} #USInflation #CPIReport #FederalReserve #EconomicData #SlimScan #GrowthStocks #CANSLIM