In December, the annual inflation rate held steady at 2.7%, as reported by the Bureau of Labor Statistics. This marks the conclusion of a year that showed minimal progress in combating inflation, yet affordability remains a significant issue for many Americans. The Consumer Price Index (CPI), which tracks the price changes of essential goods and services, reflected this unchanged annual rate.
Inflation Overview
While the annual inflation rate remained static from November to December, there was a noticeable increase in the monthly inflation pace. The monthly CPI rose by 0.3%, a jump from November’s increase of just 0.1%. This month-over-month growth is noteworthy, especially considering the previous months’ figures may have been skewed due to the 43-day government shutdown that affected data collection.
Anticipated Trends in December
Economists had predicted a 0.3% rise for the monthly CPI in December. They also estimated an easing of the annual inflation rate to approximately 2.6%. The core inflation rate, which excludes volatile food and energy prices, was expected to similarly show a 0.3% increase with an uptick in annual figures to 2.7%.
Core Inflation Insights
The report issued on Tuesday revealed that the core CPI increased by 0.2% compared to November. This brought the annual core inflation rate to 2.7%, indicating ongoing inflationary pressures.
Year-End Summary
As 2025 came to a close, overall inflation continued to surpass normal levels. However, the final CPI data for the year indicated some progress, with the overall and core inflation rates of 2.7% being lower than January’s figures of 3% and 3.3%, respectively.
- Annual CPI: 2.7%
- Monthly CPI increase: 0.3%
- November CPI increase: 0.1%
- Core CPI increase: 0.2%
- Expected CPI trends: 0.3% monthly increase, 2.6% annual rate
This information is subject to updates as more data becomes available.
