Data released by the U.S. Labor Department on Tuesday showed that the Consumer Price Index (CPI) rose 2.7% year-on-year in December 2025, while the core CPI rose 2.6% year-on-year, both unchanged from November. Currently, Federal Reserve officials are divided on whether inflation or labor market risks should be prioritized, and they will closely watch Tuesday's report to assess how businesses are passing on tariff-related costs to consumers. This December CPI report is the first comprehensive review of inflation trends in several months. Due to the government shutdown last fall, the Labor Department was unable to collect price data on-site and had to use technical means to process missing data in the previous inflation report. Although the inflation rate is currently slower than it was several years ago, prices for necessities such as food and insurance remain significantly higher than before. The December CPI report indicates that inflation in 2025 is generally moderate, although there was a limited rebound in inflation during the summer. (Wall Street Journal)