CPI rose at 2.7% annual rate in December as inflation remains sticky

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Updated on: January 13, 2026 / 7:23 PM EST

/ CBS News

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The Consumer Price Index rose at an annual rate of 2.7% in the final month of 2025, in line with economists' forecasts and unchanged from the prior month, capping a year when many Americans felt squeezed by price pressures.By the numbersThe CPI was expected to rise 2.6% on an annual basis last month, according to economists surveyed by financial data firm FactSet. The CPI tracks the changes in a basket of goods and services typically bought by consumers, such as food and apparel. Inflation last month matched November's 2.7% annual pace, signaling that prices didn't ease further at the end of the year. So-called core inflation, or CPI data that excludes volatile food and energy prices, rose by 2.6% over the past 12 months, according to the Bureau of Labor Statistics. Economists polled by FactSet had predicted a 2.7% increase for that measure.Food prices jumped 3.1% last month, accelerating from a 2.6% increase in November, and the highest since August. Groceries have remained a sticking point for Americans who have had to stretch their budget to afford basic staples. For cash-strapped Americans, that could prove to be a pain point as we navigate a tricky economic backdrop.