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
Residents living in Canada's biggest city of Toronto have expressed optimism that Canadian Prime Minister Mark Carney's official visit to China can unlock new economic opportunities, particularly in key fields such as artificial intelligence and infrastructure.
Carney is set to arrive in China on Wednesday to begin a four-day visit at the invitation of Chinese Premier Li Qiang, marking the first trip by a Canadian prime minister to China since 2017.
A Chinese foreign ministry spokesperson confirmed Chinese President Xi Jinping will meet with Carney during his stay to provide new strategic guidance for further improving and developing China-Canada relations.
Giving their assessment of the significance of the visit and the outcomes they hope to see achieved, local people in Toronto pointed to the importance of deepening cooperation and view the high-tech sector as one of the most pivotal areas where ties can be enhanced.
"I think, of course, China is probably the leader in AI and new technologies. So, I think Canada can really benefit from Chinese expertise on some of the chip manufacturing or just the use of AI in the medical field, in every other finance field and everything. So, I think this can be very important for Canada to learn from China," said Raman, the provincial liaison manager at the Canadian Federation of Independent Business.
"I think it is a good idea to strengthen relations with other countries and other trade partners that have been probably more consistent. And especially with things going on in electronics right now and chip manufacturing, I do think that it makes sense at this point in time to be reaching out to China," said Jen, a local nurse.
Some see Carney's visit as an opportunity to broaden the economic agenda in various other key areas.
"I'm actually pretty looking forward to it because they could talk a lot about trade. That could be a good opportunity for Canada and China to explore some other export opportunities on energy, and also, maybe pipeline building, infrastructure building, and also, real estate investment and agriculture," said Xiong Lulu, an equity research analyst.
Looking ahead, many residents emphasize that much depends on whether Carney's visit can translate into concrete agreements.
"It would be nice. I hope there's some kind of good relationship between China and Canada. That would be like a great opportunity that we would miss if we didn't create that relationship with them. So, hopefully, in hindsight, [in] 2026 it does happen," said John, a software developer.
"I think if they can settle some trade deals, that will be great. So, I think it will be great for the Canadian economy," said Xiong.
President Xi and Carney last met on the sidelines of the 32nd APEC Economic Leaders' Meeting in the Republic of Korea (ROK) in October, with both sides agreeing to resume exchanges and cooperation in various fields and jointly advance the development of the China-Canada strategic partnership.
Toronto residents optimistic about Canada-China cooperation prospects
