Consumer prices in the U.S. increased in line with economist estimates in the month of December, according to a report released by the Labor Department on Tuesday.
The Labor Department said its consumer price index climbed by 0.3 percent in December, matching economist expectations.
Excluding food and energy prices, core consumer prices rose by 0.2 percent in December. Economists had expected core prices to rise by 0.3 percent.
The report also said the annual rate of growth by consumer prices came in at 2.7 percent in December, unchanged from November and in line with estimates.
The annual rate of growth by core consumer prices was also unchanged from the previous month at 2.6 percent, while economists had expected an uptick to 2.7 percent.
“Distortions caused by the government shutdown have made the inflation data harder to interpret, but the recent run of figures suggests inflation has peaked,” said Michael Pearce, Chief U.S. Economist at Oxford Economics.
He added, “We think tariff-driven price rises have mostly been passed through and anticipate further disinflation in services inflation in 2026 will drive inflation back closer to the 2% target by the end of the year.”
The Labor Department said the largest factor in the monthly increase by consumer prices was the 0.4 percent growth in prices for shelter.
Prices for food also advanced by 0.7 percent during the month of December, while prices for energy rose by 0.3 percent.
The uptick by core prices reflected the increase in shelter costs as well as higher prices for recreation, airline fares, medical care, apparel, personal care, and education.
Meanwhile, the report said prices for communication, used cars and trucks and household furnishings and operations were among those that decreased in December.
The Labor Department is scheduled to release a separate report on producer price inflation in the month of December on Wednesday.
Producer prices are expected to rise by 0.3 percent in December, while the annual rate of growth is expected to remain unchanged at 2.7 percent.
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