"The US ended 2025 with a lower inflation rate, but it was still far above the Federal Reserve's target. The year-over-year inflation rate was 2.7% in December, the same as the forecast and November's increase, and down from the 2.9% a year ago. After most October year-over-year figures couldn't be calculated because of data collection issues during the government shutdown, the new report brings a little more clarity to how quickly prices have changed in the last few months of the year."
"Core CPI, which excludes volatile food and energy prices, rose 2.6% from a year ago, just below the 2.7% forecast and matching November's 2.6% increase. Both overall and core CPI were expected to rise 0.3% over the month. Headline CPI matched that expected 0.3% increase, holding steady from September, the last month with an available change. Core CPI increased 0.2%, as it did in September."
Inflation remained at 2.7% year-over-year in December, matching forecasts and November's rate and down from 2.9% a year earlier. Core CPI rose 2.6% year-over-year, slightly below the 2.7% forecast and matching November's increase. Headline CPI rose 0.3% month-over-month, while core CPI increased 0.2% month-over-month. Most October year-over-year figures were unavailable due to data collection issues during the government shutdown, and the new data adds clarity to recent price changes. The economy added 584,000 jobs in 2025, unemployment stayed low but was higher than a year earlier, and the Fed is expected to hold rates.
Read at Business Insider
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