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.

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.

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.

President Donald Trump welcomed December inflation figures released on Tuesday, saying they supported his push for Federal Reserve chair Jerome Powell to cut interest rates. The closely watched core CPI year-on-year figure came in at 2.

U.S. inflation slowed to 2.7% in 2025, the lowest since 2020, as the Fed cut rates and tariffs added costs to some household goods.

Price hikes picked up speed for US-based businesses toward the end of last year, a potential signal that inflation has yet to peak and prices could soon rise faster for consumers.

Global shares dipped on Tuesday and the dollar recovered some lost ground ahead of U.S. inflation data and major bank earnings, while oil prices gained as unrest in Iran fanned fears for supplies. U.S.

Inflation held steady in December, continuing to prove stubborn just days after reports of a Department of Justice probe into Federal Reserve Chair Jerome Powell.

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.

The Dow Jones Industrial Average and the other major stock indexes traded lower Wednesday morning as Wall Street reacted to more inflation data. Among the losers on the stock market today was Nvidia NVDA as well as bank stocks. Meanwhile, silver mining names rallied early before giving back gains.