The U.S. Consumer Price Index (CPI) rose 2.7% year-on-year in December 2025, unchanged from November, with core CPI steady at 2.6%. Federal Reserve officials remain divided on balancing inflation risks and labor market concerns, closely analyzing how tariff costs impact consumer prices. Inflation trends have been moderate throughout 2025 despite a summer rebound, with essential goods like food and insurance still notably more expensive than in the past.