Annual inflation remains 2.7% in December, final 2025 report reveals

U.S. consumer prices rose 2.7% in December from a year earlier, the Labor Department said today, in line with forecasters’ expectations.

The final Consumer Price Index report of 2025 caps off a year in which inflation gradually eased but remained uneven across the economy. Annual inflation briefly climbed to 3% in September before easing back to 2.7% in November, reflecting smaller price increases for gasoline, new vehicles, and other items.

Economists see the December report as a clearer window into U.S. inflation trends after data disruptions tied to last year’s government shutdown impacted the prior CPI release.

The new report found that from November to December, consumer prices increased 0.3%. Price gains were led by increases in the cost of shelter and food.

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