US Consumer Inflation Steady at 2.7% in December, Core Inflation Eases Slightly

The U.S. Consumer Price Index (CPI) for December 2025 showed inflation steady at 2.7% annually, matching November's rate and market expectations. Core inflation, excluding food and energy, remained at 2.6%, slightly below forecasts. Shelter costs rose 0.4%, contributing significantly to monthly increases. The data reflect persistent inflationary pressures, influencing the Federal Reserve's cautious approach to interest rate adjustments amid a mixed labor market and economic factors including prior government shutdown distortions and tariff impacts.