U.S. consumer prices rise 2.7% in December

The U.S. Consumer Price Index rose 0.3% in December and 2.7% year‑on‑year; core CPI increased 0.2% for the month and 2.6% annually.

U.S. consumer prices rose in December as some distortions from a recent government shutdown unwound. The Bureau of Labor Statistics reported the Consumer Price Index increased 0.3% for the month and 2.7% over the past 12 months. The shutdown had disrupted October price collection and led the BLS to use a carry‑forward method that affected November's readings. The result has helped cement expectations that the Federal Reserve will leave interest rates unchanged at its upcoming January meeting. Key details: - The Consumer Price Index rose 0.3% in December and advanced 2.7% in the 12 months through December, according to the BLS. - Core CPI, which excludes food and energy, increased 0.2% in December and 2.6% year‑on‑year. - A 43‑day government shutdown prevented October price collection; the BLS used a carry‑forward imputation, notably for rents, when compiling November data. - The Fed follows the Personal Consumption Expenditures price indexes for its 2% inflation target; the CPI pickup came after a reported dip in the unemployment rate amid tepid job growth. - The U.S. central bank is expected to keep its policy rate in the 3.50%–3.75% range at its Jan. 27–28 meeting. - The article reports that import tariffs have raised goods prices and that the administration opened a criminal investigation involving the Fed chair. Summary: The December CPI increase and the unwinding of shutdown‑related distortions reinforced expectations that the Federal Reserve will maintain its current policy rate at the Jan. 27–28 meeting. Broader economic and political factors cited in the article, including tariffs and an investigation mentioned by the administration, form part of the reported context for policy discussions.