December CPI report shows 2.7% annual inflation rate

The Consumer Price Index (CPI) increased by 2.7% annually in December 2025, matching forecasts, as inflation remained steady throughout the year. Core inflation, excluding food and energy, rose by 2.6%, while food prices surged 3.1%, with significant increases in ground beef and coffee. Despite the Federal Reserve’s rate cuts in response to a cooling labor market, inflation persisted above the 2% target. Many households continued to face financial pressure, complicating savings and home-buying efforts.