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US inflation holds steady at 2.7% as December CPI rises

16 Jan '26

2 min read

US inflation holds steady at 2.7% as December CPI rises

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US consumer prices rose 0.3 per cent in December 2025, keeping annual inflation steady at 2.7 per cent, according to the BLS.
Energy prices increased 0.3 per cent, led by a 4.4 per cent jump in natural gas, while petrol and electricity declined.
Core inflation rose 0.2 per cent on the month and 2.6 per cent over the year.
CPI-W rose 2.6 per cent and chained CPI 2.5 per cent.

US consumer prices continued to rise steadily in December 2025, with the Consumer Price Index for All Urban Consumers (CPI-U) increasing 0.3 per cent month on month (MoM) on a seasonally adjusted basis, according to the US Bureau of Labor Statistics (BLS). Over the past 12 months, headline inflation stood at 2.7 per cent, unchanged from November.

Energy prices rose 0.3 per cent in December. While electricity edged down 0.1 per cent and gasoline declined 0.5 per cent on a seasonally adjusted basis, natural gas prices jumped 4.4 per cent, lifting the overall energy index, US Bureau of Labour Statistics said in a press release.

On an annual basis, energy inflation stood at 2.3 per cent, driven mainly by electricity, up 6.7 per cent, and natural gas, which surged 10.8 per cent, even as petrol prices were 3.4 per cent lower than a year earlier.

Core inflation (excluding food and energy), increased 0.2 per cent in December and rose 2.6 per cent over the past 12 months.

In not seasonally adjusted terms, the CPI-U rose 2.7 per cent over the past year to an index level of 324.054. The CPI-W, which tracks urban wage earners and clerical workers, increased 2.6 per cent, while the chained CPI rose 2.5 per cent, indicating slightly softer inflation when consumer substitution effects are taken into account.

Fibre2Fashion News Desk (SG)

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