Washington, D.C., January 14, 2026

In December 2025, the U.S. saw a slight easing in inflation with a monthly increase of 0.3%, bringing the annual rate to 2.7%, above the Federal Reserve’s 2% target. Despite cooling inflation, rising food prices, especially in the ‘food at home’ category, continue to challenge household budgets. The Federal Reserve is contemplating interest rate adjustments amid these persistent inflationary pressures, highlighting the ongoing economic challenges faced by many Americans.

Inflation Eases Slightly in December 2025, Remains Above Federal Reserve’s Target