CPI rose at 2.7% annual rate in December as inflation remains sticky

January 13, 2026

TL;DR

The Consumer Price Index (CPI) rose 2.7% annually in December 2025, matching November's rate.
Core inflation, excluding food and energy, rose 2.6% over the past 12 months.
Food prices increased by 3.1% in December, marking the highest jump since August.
Ground beef, coffee, and bananas saw significant price increases, while eggs decreased in price.
Inflation remained below the pandemic peak but has caused lingering price pressures for consumers.
The Federal Reserve cut interest rates three times in late 2025 due to labor market concerns, despite inflation exceeding the 2% target.
Experts believe inflation is unlikely to reach the 2% target in 2026.
The Federal Reserve is expected to keep interest rates steady at its upcoming meeting.

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