Prices rose 2.7% in December from a year ago, a sign that inflation continues rising but in line with the pace seen in recent months.

So-called core inflation, or CPI data that excludes volatile food and energy prices, rose by 2.6% over the past 12 months, according to the Bureau of Labor Statistics. Economists polled by FactSet had predicted a 2.7% increase for that measure.

The final Consumer Price Index report of 2025 caps off a year in which inflation gradually eased but remained uneven across the economy.

Economists expect the December CPI inflation report to show price growth remained elevated and cautioned it may have a downward bias due to missing data from the government shutdown.

While inflation remained well below the highs reached in 2022 and 2023, it also proved more stubborn than many forecasters expected in 2025.

US consumer prices rose 2.7% annually in December, closing out a year that saw slight progress on inflation but continued affordability concerns for many Americans.

An inflation report on Tuesday is set to provide a key gauge of the nation's economy, just days after the Department of Justice's probe into Fed Chair Powell.

Key economic data are due this week, including two inflation readings. The U.S.'s largest banks are also scheduled to report earnings, starting with JPMorgan Chase. Later this week, results from Taiwan Semiconductor Manufacturing,

Stocks are holding near their records on Wall Street following the latest update on inflation, one that could keep the door open for the Federal Reserve to cut interest rates further later this year.