Consumer Price Index Shows Inflation Held Steady at 2.7% Annual Rate
Consumer Price Index Overview
The Consumer Price Index (CPI) data shows inflation at an annual rate of 2.7% in December 2025, matching previous forecasts and the prior month’s rate. This sustained inflation rate underscores ongoing economic challenges for consumers as they grapple with price increases.
Inflation Insights
- The CPI reflects changes in the cost of a typical basket of goods and services.
- Economists had anticipated a 2.6% increase, marking a stabilization in prices.
- Core inflation, excluding food and energy, also rose by 2.6%.
Food Price Changes
Food prices have notably surged, with a 3.1% increase last month. Essential items like ground beef and coffee have seen substantial hikes of 15.5% and 19.8%, respectively, while eggs experienced a significant price drop of 20.9%.
Economic Outlook
Despite a year of persistent inflation below 3%, prices continue to press on households. The CPI's trajectory throughout 2025 remained a concern as consumers faced complexities in budgeting and long-term financial planning.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.