YoY Inflation Nov 2025 👍

US inflation continued to cool in December, falling to 2.7% and beating expectations of 3.1%. Core inflation also declined to 2.6%, its lowest since early 2021. Energy costs rose notably while apparel and new vehicles saw minimal increases. October data remains unavailable due to a government shutdown.

Key Data Points:

• Overall inflation came in at 2.7% year over year in December 2025
• This is the lowest rate since July and below the expected 3.1%
• Core inflation (excluding food and energy) held at 2.6%, the lowest since March 2021
• Energy index jumped 4.2% overall, with fuel oil up 11.3% and natural gas up 9.1%
• Gasoline rose a modest 0.9%
• Food prices increased 2.6%
• Shelter costs up 3%
• Household furnishings and operations rose 4.6%
• Medical care increased 2.9%
• Used cars and trucks up 3.6%
• Recreation rose 1.8%
• Smallest increases: apparel (0.2%) and new vehicles (0.6%)
• October data missing due to 43 day government shutdown
• CPI rose 0.2% over the two month period from September to November

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