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CPI Report Explained: What Inflation Data Showed for December 2025

The December 2025 CPI report showed 2.7 percent headline inflation and 2.6 percent core inflation, with shelter the largest monthly driver, per BLS data released January 13, 2026.

Quiet early-morning supermarket aisle stocked with groceries under fluorescent light
Shelter and food costs drove the December 2025 CPI increase, per BLS data released January 13, 2026.

The Consumer Price Index for December 2025 rose 0.3 percent on a seasonally adjusted monthly basis, and the all-items index climbed 2.7 percent over the 12 months ending in December, the Bureau of Labor Statistics (BLS) reported on January 13, 2026. The annual figure matched November, and core inflation ran slightly lower at 2.6 percent.

Horison publishes information, not investment advice. Inflation statistics describe past price changes; they cannot tell any reader what to do with a portfolio, and each reading depends on measurement choices the BLS documents in its release.

What did headline and core CPI show in December 2025?

Per the BLS release of January 13, 2026, headline CPI advanced 0.3 percent for the month, while core CPI, which excludes food and energy costs, increased 0.2 percent. Over 12 months, core CPI rose 2.6 percent, slightly below the 2.7 percent headline rate. Food prices were up 3.1 percent year over year, and energy prices rose 2.3 percent.

Shelter was the largest factor in the monthly increase, rising 0.4 percent in December and 3.2 percent over the year. Egg prices fell 8.2 percent for the month and were down 20.9 percent year over year, while coffee cost about 19.8 percent more than a year earlier. The recreation index rose 1.2 percent, which the BLS described as the largest one-month increase ever reported for that index, and airline fares gained 5.2 percent. Used-vehicle prices declined 1.1 percent.

The release also noted gaps in the October and November 2025 price data stemming from the lapse in federal appropriations that year, a caveat the BLS attached to recent-month comparisons.

How did markets react to the release?

Per CNBC reporting on January 13, 2026, stock-index futures briefly rose after the 8:30 a.m. ET release, and Treasury yields moved as traders weighed the figures against Federal Reserve policy expectations. The report matched the 2.7 percent annual rate economists had anticipated for headline inflation, according to the same coverage.

Where does December fit in the 2025 inflation trend?

The 12-month rate climbed from 2.3 percent in April 2025 to 2.7 percent by December, per BLS data. One monthly report carries limited weight on its own, because seasonal-adjustment factors and revisions can shift readings after publication. The CPI for January 2026 was scheduled for release on February 13, 2026, per the BLS release calendar.

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Frequently Asked Questions

What is the difference between headline and core CPI?
Headline CPI covers all goods and services in the index, while core CPI excludes food and energy, which move erratically month to month. In December 2025, headline CPI was up 2.7 percent year over year and core CPI rose 2.6 percent, per the BLS release of January 13, 2026.
When was the next CPI report scheduled after this release?
The CPI for January 2026 was scheduled for release on February 13, 2026, at 8:30 a.m. ET, per the BLS schedule of releases published on bls.gov.

Sources

  1. December 2025 CPI readings: 0.3% m/m headline, 2.7% y/y, core 0.2% m/m and 2.6% y/y, food, energy, shelter, eggs, coffee, recreation, airline fares, used vehicles, shutdown data noteU.S. Bureau of Labor Statistics, Consumer Price Index news release (December 2025)
  2. Next CPI release scheduled February 13, 2026BLS Schedule of Releases for the Consumer Price Index
  3. Market reaction: futures briefly rose, Treasury yields moved, expectations matchedCNBC, December CPI inflation report coverage