Core CPI shows forecasts in December, reducing pressure on the Fed

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December's core inflation rate increased by 0.2%, below expectations of 0.3%. The annual increase in the consumer price index remains flat at 2.7 percent.

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US inflation in 2010 It slowed in December 2025 and core CPI rose 0.2% on the month, missing economists' estimates, the Bureau of Labor Statistics reported on Tuesday.

On an annual basis, core CPI rose 2.6 percent, matching a four-year low and showing signs that inflation is improving.

Total consumer prices, which include food and energy, rose 0.3% in the month, up 2.7% year-on-year, unchanged from November. Due to the increase in the price of natural gas, energy costs have increased, although the price of eggs has decreased, the price of food has increased. Accommodation costs continue to be the largest contributor to overall inflation.

An unusually long government shutdown in November's CPI delayed October's price pick-up and dampened speculation about housing costs, economists said, adding that holiday discounts may have contributed to the distortion.

The softer-than-expected reading may give the Fed more confidence to hold off on further rate cuts.

Economists said the data suggested that underlying inflation would moderate, reducing the need for immediate monetary stimulus, although the Fed would still weigh rate pressures and labor market trends.

After the release, stock futures advanced and Treasury yields fell. Bitcoin remained around $92,000, showing little reaction to the news.