Core CPI Falls Below Forecasts Easing Fed

US Core CPI Growth Slows in December 2025

• The core inflation rate increased by 0.2% in December, below the expected 0.3%.
• Annual core Consumer Price Index (CPI) growth was 2.6%, matching a four-year low.
• Overall consumer prices rose 0.3% for the month, maintaining a yearly increase of 2.7%.
• Energy costs rose due to higher natural gas prices, while food prices increased despite lower egg prices.
• Shelter costs were the largest contributor to overall inflation.

The slower-than-expected rise in core CPI suggests moderating inflation, potentially allowing the Federal Reserve to pause further rate cuts. Economists note that underlying inflation pressures may be easing, reducing the need for immediate monetary intervention.