Core CPI undershoots forecasts in December, easing pressure on the Fed
US core inflation slowed in December, rising 0.2% monthly and 2.6% annually, which should ease pressure on the Federal Reserve.Summary
US inflation growth moderated in December 2025, as the core Consumer Price Index (CPI) increased by 0.2% monthly, falling short of economists' expectations. Annually, core CPI rose 2.6%, matching a four-year low, signaling moderating inflation. Overall consumer prices rose 0.3% for the month, keeping the year-over-year increase steady at 2.7%. Shelter costs were the primary driver of overall inflation, while energy costs rose due to higher natural gas prices, despite a drop in egg prices. Economists suggest this softer reading provides the Federal Reserve with more confidence to pause further rate hikes, although the Fed will still consider factors like tariff pressures and labor market trends. Following the report, equity futures rose, Treasury yields dropped, and Bitcoin remained stable.
(Source：Crypto Briefing)