US inflation holds steady, giving embattled Fed room to breathe over interest rate cuts
Final 2025 report shows US inflation held steady in December
- Inflation in December remained unchanged at 2.7 percent, matching the rate in November and falling short of economists' predictions.
- Core inflation, which excludes volatile food and gas prices, also held steady at 2.6 percent.
- Despite the overall stagnant rate, prices for essential goods such as coffee, flour, and bread remained elevated year-on-year, impacting families.
- Conversely, some items saw significant price decreases, including eggs (down 20.9 percent), propane, kerosene, firewood, car and truck rentals, and potatoes.
- The report provides data for the Federal Reserve's upcoming interest rate decisions, though experts suggest it may have limited immediate impact due to anticipated leadership changes, despite pressure from the president regarding affordability.