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.

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 latest release of inflation statistics shows price growth was in line with what economists expected after the government shutdown resulted in a confusing November reading. The consumer price index climbed 2.

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.

With inflation remaining higher than normal, these practical strategies can help you save money, adjust your spending, and protect your budget.

This past month’s inflation rate was 2.7 percent, matching November’s rate and lower than September’s 3.0 percent, according to the Bureau of Labor Statistics Consumer Price Index, a data-rich report that tracks the rise and fall of the price of consumer goods and services.