Bureau of Labor Statistics CPI report for February 2025

US Inflation Hits 2.9% in December, Highest Since July, as Core CPI Eases

Jan 15, 2025, 01:32 PM

US consumer prices rose 2.9% year-on-year in December, matching expectations and up from 2.7% in November, according to data released by the Bureau of Labor Statistics. This marks the highest inflation rate since July 2024. The Consumer Price Index (CPI) increased 0.4% month-on-month, driven by higher energy costs, with gasoline prices up 4.4% and the energy index rising 2.6%. Core CPI, which excludes food and energy, rose 3.2% year-on-year, slightly below the expected 3.3% and down from 3.3% in November, indicating a slight easing in underlying price pressures. Core CPI increased 0.2% month-on-month versus the anticipated 0.3%. The rise in inflation was influenced by higher prices for gas, eggs, and used cars. The data comes just days before President-elect Donald Trump takes office and could influence the Federal Reserve's approach to interest rates in the coming year.