In this video we break down the results from the CPI reading to see if there are any clues about the rates potentially getting cut this year.
As it stands, the only problem we have is the fed prob that could be leading us into a tricky situation if it's not resolved with speed. Video by Traders Reality.
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The Consumer Price Index (CPI) reading for December 2025, released on January 13, 2026, showed that inflation is stabilizing, with core figures coming in slightly lower than anticipated.
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Headline CPI Results (December 2025)
--Annual Rate: 2.7%, which was in line with economist expectations and unchanged from the November reading.
--Monthly Rate: +0.3% month-over-month (seasonally adjusted), matching consensus forecasts.
Core CPI Results (Excludes Food and Energy)
--Annual Rate: 2.6%, slightly below the forecasted 2.7%. This reading matches a four-year low first reached in November.
--Monthly Rate: +0.2%, lower than the expected 0.3%, signaling that underlying price pressures are abating.
Key Price Drivers
--Shelter: The largest contributor to the monthly increase, rising 0.4% in December and 3.2% over the past year.
--Food: Increased 0.7% for the month, with an annual rise of 3.1%.
--Energy: Rose 0.3% in December, putting the annual increase at 2.3%.
--Other Notable Changes: Increases were seen in medical care (+3.2%) and recreation (+3.0%), while prices for used vehicles and household furnishings declined.
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