The U.S. consumer price index (CPI) saw a year-on-year increase of 2.7 percent in December 2025, in line with that in the previous month, according to data released by the U.S. Bureau of Labor Statistics (BLS) on Tuesday.
Excluding volatile food and energy, core CPI rose 2.6 percent annually, which was slightly below the 2.7 percent consensus expectation.
In particular, the food price index in December grew 3.1 percent year on year, up from 2.6 percent in the previous month, and energy price inflation eased to 2.3 percent in December, down from 4.2 percent, due to lower oil prices.
Shelter costs, a major component in the consumer price index, grew 3.2 percent year on year in December 2025. New vehicle prices remained the same as the previous month, while the price of used cars and trucks dipped 1.1 percent month on month.
Notably, "the index for recreation increased 1.2 percent over the month, the largest 1-month increase ever reported for that index, which was first published in 1993," said the BLS in the latest release.
Following three rate cuts in the second half of 2025, the Federal Reserve is expected to keep benchmark interest rates unchanged in the near future as U.S. inflation remains materially higher than the target of 2 percent.
US CPI growth remains at 2.7 percent in December
