Inflation Doesn’t Budge in December
A cashier rings up groceries in Dallas, Aug. 28, 2025. (AP Photo/LM Otero, File)
Consumer prices increased 0.3% in December compared with the previous month, matching the pace seen in November, according to data released Tuesday by the Labor Department. When food and energy prices are excluded, core inflation rose 0.2%, also unchanged from the prior month.
On a year-over-year basis, overall inflation rose 2.7%, while core inflation came in at 2.6%, CNBC reported. Both figures were steady from November and aligned with economists’ expectations. Financial markets showed little reaction following the report’s release.
The Wall Street Journal noted that the data suggest the effects of tariffs remain limited. The report also provided some reassurance to Federal Reserve officials, who cut interest rates last month. The Fed has set a long-term target of reducing inflation to 2% annually.
Food prices climbed 0.7% in December, while housing costs, transportation services, and medical care also posted gains. Those increases offset declines in gasoline and used-vehicle prices.
Although inflation has fallen sharply from its four-decade high of 9.1% reached in June 2022, it has remained near 3% since late 2023. Prices for everyday necessities, including groceries, are still about 25% higher than they were before the pandemic.
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