Inflation picked up modestly in December, with the overall Consumer Price Index rising 0.3% for the month and 2.7% over the past year.
The sharpest price increases were seen in recreation, airline fares, shelter, and food-related categories.
Several key prices fell or barely moved, including gasoline, eggs, used vehicles, communication services, and new cars.
Prices paid by U.S. consumers rose at a steady pace in December, but the details show a widening gap between the items rising fastest and those offering some relief.
The Bureau of Labor Statistics reported that shelter costs were the single biggest contributor to December’s increase in the Consumer Price Index, climbing 0.4% for the month and 3.2% over the past year. Rent and owners’ equivalent rent both rose 0.3%, while lodging away from home jumped a notable 2.9% in just one month.
The CPI rose 0.3% in December. For 2025, the inflation rate was 2.7%.
Among the fastest-rising categories, recreation prices surged 1.2% in December, the largest one-month increase ever recorded for that index. Airline fares jumped 5.2%, marking one of the steepest increases consumers faced during the month. Medical care services also continued to climb, with hospital services rising 1.0% and overall medical care up 0.4%.
Food prices still rising
Food prices were another major pressure point. Grocery store prices rose 0.7% in December, matching the increase for dining out. Within grocery stores, “other food at home” climbed 1.6%, dairy products rose 0.9%, and cereals and bakery items increased 0.6%. Over the past year, food away from home rose 4.1%, led by a 4.9% increase in full-service restaurant meals.
Energy costs were mixed but still higher overall. Natural gas prices spiked 4.4% in December and are up 10.8% over the past year, making them one of the fastest-rising household expenses. Electricity prices, though down slightly for the month, are still up 6.7% year over year.
What prices are going down
At the other end of the spectrum, several prices moved lower or barely changed, easing pressure in specific areas. Gasoline prices fell 0.5% in December and are down 3.4% from a year earlier. Egg prices plunged 8.2% in a single month, helping pull down the broader meats, poultry, fish, and eggs category.
Big-ticket items also showed weakness. Used cars and trucks dropped 1.1% in December, while new vehicle prices were unchanged. Communication services fell sharply, down 1.9% for the month, and household furnishings and operations declined 0.5%.
Taken together, the data show inflation that remains contained overall but unevenly distributed. Essentials such as housing, food, and utilities continue to rise faster than average, while discretionary and goods-related categories — from vehicles to electronics and communication services — are providing the most relief for consumers.