The consumer price index rose 2.7% in December from 12 months earlier, CNBC reported, citing data from the Bureau of Labor Statistics (BLS). The rate is unchanged from November and in line with estimates.
The slowed increase reinforces “hope that inflation is tempering as the Federal Reserve contemplates its next move on interest rates. … The Fed targets inflation at 2% annually, so the report provides some evidence that the pace of price increases is moving back to target but remains elevated,” wrote CNBC.
Excluding food and energy prices, the consumer price index showed a seasonally adjusted 0.2% gain on a monthly basis and 2.6% annually, both 0.1 percentage points below expectations.
However, other parts of the report show inflation persisting: Food prices increased 0.7% and recreation, airfare and medical care also saw increases. Recreation, which increased 1.2%, was the largest monthly gain ever for the index in data going back to 1993, according to BLS.
Some tariff-sensitive categories, including apparel, also posted gains. However, household furnishings saw a 0.5% decrease as President Donald Trump backed off on threatened tariff increases, CNBC reported.
According to the December 2025 Numerator Consumer Price Index, prices for everyday household goods are up 2.4% versus a year ago.
“Everyday goods inflation remains elevated at roughly 2% to 2.5% annually,” said Paul Stanley, senior economist, Numerator. “Because these categories represent frequent, essential purchases, consumers continue to feel the impact of persistently high prices even as monthly changes are moderate.”