Inflation numbers from the core consumer price index were released on Tuesday, Jan. 13, showing how much prices went up for the average U.S. consumer.
Inflation, according to research from Investopedia, is “an increase in the average price of goods and services over time, which reduces the purchasing power of money.”
“The inflation rate is calculated as the average price increase of a basket of selected goods and services over one year,” Investopedia adds. “High inflation means that prices are increasing quickly, while low inflation means that prices are growing more slowly.”
Good News in Inflation CPI Report
The good news is that core U.S. consumer prices went up less than predicted in December 2025, meaning inflation rose at a lower pace than projected. The move comes amid the Federal Reserve contemplating its next move on interest rates.
Outside of volatile food and energy prices, the consumer price index had a 0.2 percent gain on a monthly basis and 2.6 percent annually, according to a report from the Bureau of Labor Statistics released on Tuesday, Jan. 13. Both of those figures were 0.1 percent lower than expected.
How Much Food Prices Went Up, According to CPI Report
Looking at food prices, those went up 0.7 percent for the month and were up 3.1 percent from the same time last year. The food at home index was also 2.4 percent higher than a year ago, and the food away from home index was 4.1 higher. Both were 0.7 percent higher on a monthly basis.
“Meats, poultry and fish prices were up 6.9 percent from a year ago, while egg prices were down 8.2 percent compared with last year as a supply shortage from an avian flu outbreak has eased,” Fox Business states in a Jan. 13 feature. “The fruits and vegetables index showed prices rose 0.5 percent on a monthly basis and were flat compared with a year ago.”
Energy prices were up 0.3 percent in December and are 2.3 percent higher than a year ago. Gas prices were down 0.4 percent on a monthly basis and down 3.4 percent since this time i 2025. Electricity costs were down 0.1 percent in December but have gone up 6.7 percent in the past year.
As for interest rates, the Fed is expected to meet at a meeting later this month and likely consider another rate cut in June.
