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 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.

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.

The annual CPI inflation rate was 2.7% in December, in line with economist expectations and unchanged from November. Rising shelter prices drove December inflation, while goods price growth remained subdued. Analysts overwhelmingly expect the Fed to keep ...

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.

Stocks are holding near their records on Wall Street following the latest update on inflation, one that could keep the door open for the Federal Reserve to cut interest rates further later this year.