U.S. Inflation Eases in December as Consumer Price Growth Continues to Slow

January 13, 2026 Javier Zelaya

January 13, 2026 | MB Daily News | Los Angeles CA

U.S. Inflation Eases in December as Price Pressures Continue to Cool

December inflation trend shows cooling consumer prices — December inflation trends indicate easing price pressures across the U.S. economy.

December inflation data showed further signs of cooling as the Consumer Price Index rose at a slower pace. As a result, markets viewed the report as confirmation that price pressures are easing.

Consumer prices increased modestly compared with the previous month. Meanwhile, the annual inflation rate continued its gradual decline.

Core inflation, which excludes food and energy, also moderated in December. This measure is closely watched by Federal Reserve policymakers.

Economists noted that housing and services costs remain elevated. However, prices for goods such as vehicles and household items continued to fall.

Energy prices were mixed during the month. Still, overall inflation remained contained.

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Financial markets reacted cautiously to the data. Stocks traded mixed as investors balanced inflation progress against economic growth.

Treasury yields edged lower following the report. Lower yields often provide support for equities.

Federal Reserve officials have emphasized the need for sustained improvement. Policymakers want clearer evidence before making changes to interest rates.

For now, the latest inflation report supports expectations of a gradual slowdown. Still, the central bank remains cautious.

Analysts expect inflation to continue easing into early 2026. However, services inflation remains a key area to watch.