Bureau Of Labor Statistics Reports 0.3% Monthly CPI Rise And 2.7% Annual Increase, Signaling Stable Price Growth To End 2025

Tuesday, January 13, 2026, 5:00 P.M. ET. 4 Minute Read, By Haylee Ficuciello, Economy & Finance Article: Englebrook Independent News,

WASHINGTON, DC.- The U.S. Bureau of Labor Statistics (BLS) reported Tuesday that inflation remained largely stable in December 2025, closing out the year with only a modest uptick after November’s unexpectedly cool reading.

     According to the BLS Consumer Price Index (CPI) report released January 13, 2025, consumer prices rose 0.3% on a seasonally adjusted basis in December and 2.7% year-over-year, matching November’s annual inflation rate. The result confirms that inflation did not accelerate into the final month of the year, reinforcing signs that price pressures across the economy are stabilizing.

     November had already surprised markets with softer inflation readings, and December’s numbers indicate that trend largely held as 2025 came to a close.

Shelter And Food Drive Monthly Increase;

     The largest contributor to December’s inflation was housing.

     The shelter index rose 0.4%, making it the single biggest driver of the all-items monthly CPI increase. Shelter includes rent and owners’ equivalent rent, which together make up more than one-third of the CPI basket and continue to reflect the elevated cost of housing across much of the country.

     Food prices also rose notably. The overall food index climbed 0.7% in December, with both food at home (groceries) and food away from home (restaurants) increasing by the same amount. Consumers continue to feel pressure at grocery stores and restaurants alike, reflecting higher labor, transportation, and production costs.

     Energy prices rose more modestly. The energy index increased 0.3% for the month, contributing to the headline inflation number but remaining well below the volatile swings seen in previous years.

Core Inflation Remains Steady;

     So-called core inflation, which strips out food and energy to provide a clearer view of underlying price trends, also showed stability.

     The core CPI rose 0.2% in December and 2.6% over the past 12 months, unchanged from November’s annual reading. This consistency suggests that inflation pressures beyond volatile essentials are not accelerating, an encouraging signal for policymakers and financial markets.

     Economists closely watch core inflation because it better reflects long-term price trends driven by wages, services, and consumer demand rather than temporary commodity swings.

What The Numbers Mean For The Economy;

     With annual CPI holding at 2.7% and core inflation at 2.6%, the December report reinforces the view that inflation has cooled significantly from the highs of the past several years while remaining above the Federal Reserve’s long-term 2% target.

     Housing and food continue to be the biggest sources of strain on household budgets, but the overall pace of inflation has slowed enough to reduce fears of a renewed price surge as the economy enters 2026.

     The stability in December also gives the Federal Reserve more flexibility in determining its interest-rate policy, as it balances inflation control with the need to support economic growth and employment.

Analysis — By Haylee Ficuciello;

     The December CPI report strongly suggests that the U.S. economy has entered a period of relative stability after several turbulent years of inflation.

     With inflation holding steady at 2.7% annually and core inflation unchanged at 2.6%, price pressures appear to be contained, even as consumers continue to grapple with higher housing and food costs. This balance, with moderate inflation without runaway increases, is precisely what policymakers have been working toward.

     As we move into 2026, a stable inflation environment should allow businesses to plan, households to budget, and investors to deploy capital with greater confidence. If employment and wage growth continue to hold up, the U.S. economy is positioned to improve steadily rather than swing between overheating and slowdown.

     While risks remain, including energy markets, geopolitical instability, and global supply chains, the December data closes 2025 on a cautious but optimistic note.

Editor’s Note:

This report is based on official data released by the U.S. Bureau of Labor Statistics in its December 2025 Consumer Price Index publication dated January 13, 2026. All inflation figures, sector changes, and trend analysis cited above reflect the BLS report and Independent News economic review. Haylee Ficuciello’s economic analysis and outlook are based on her independent evaluation of inflation, employment, and consumer price trends over the past eighteen months. Her projections for 2026 reflect professional economic judgment and trend modeling, not forward-looking guarantees.