Prices rose 2.7% in December from a year ago, a sign that inflation continues rising but in line with the pace seen in recent months.

The final Consumer Price Index report of 2025 caps off a year in which inflation gradually eased but remained uneven across the economy.

So-called core inflation, or CPI data that excludes volatile food and energy prices, rose by 2.6% over the past 12 months, according to the Bureau of Labor Statistics. Economists polled by FactSet had predicted a 2.7% increase for that measure.

US consumer prices rose 2.7% annually in December, closing out a year that saw slight progress on inflation but continued affordability concerns for many Americans.

Economists expect the December CPI inflation report to show price growth remained elevated and cautioned it may have a downward bias due to missing data from the government shutdown.

The report is the last of its kind before the Federal Reserve meets again in two weeks. With the employment report for December showing the unemployment rate sinking back to a relatively healthy 4.4 percent, officials are expected to hold interest rates steady after cutting them three times since September.

While inflation remained well below the highs reached in 2022 and 2023, it also proved more stubborn than many forecasters expected in 2025.

Global shares dipped on Tuesday and the dollar recovered some lost ground ahead of U.S. inflation data and major bank earnings, while oil prices gained as unrest in Iran fanned fears for supplies. U.S.

Price hikes picked up speed for US-based businesses toward the end of last year, a potential signal that inflation has yet to peak and prices could soon rise faster for consumers.

U.S. inflation slowed to 2.7% in 2025, the lowest since 2020, as the Fed cut rates and tariffs added costs to some household goods.

Key economic data are due this week, including two inflation readings. The U.S.'s largest banks are also scheduled to report earnings, starting with JPMorgan Chase. Later this week, results from Taiwan Semiconductor Manufacturing,

The Dow Jones Industrial Average and the other major stock indexes traded lower Wednesday morning as Wall Street reacted to more inflation data. Among the losers on the stock market today was Nvidia NVDA as well as bank stocks. Meanwhile, silver mining names rallied early before giving back gains.