Archive · 14 Jan 2026
US Inflation Holds Steady at 2.7% in December
The latest report shows that US inflation stayed the same in December 2025, at 2.7% compared to the previous year.
This means prices are still going up, but not as fast as they were a few years ago.
The core inflation rate, which doesn't include food and energy prices, also stayed at 2.6%.
The Federal Reserve, which controls interest rates, is being careful about cutting rates because they want to make sure inflation keeps going down.
Meanwhile, the World Bank says the global economy is doing better than expected, but many developing countries are still struggling.
They warn that a lot of young people will be looking for jobs in the next decade, and countries need to make sure there are enough jobs for everyone.
US inflation remained steady at 2.7% year-on-year in December 2025, with core inflation at 2.6%.
The Federal Reserve is likely to keep interest rates steady due to persistent inflation.
Global economic growth is projected to be 2.6% in 2026 and 2.7% in 2027, with developing economies lagging behind.
The World Bank warns of a significant jobs challenge as 1.2 billion young people will enter the workforce by 2035.
Prices for necessities like groceries, rent, and clothing remain higher than pre-pandemic levels, fueling economic dissatisfaction.
- Who
- US Federal Reserve, Bureau of Labor Statistics, World Bank
- What
- US inflation report and global economic prospects
- When
- December 2025, with data released in January 2026
- Where
- United States and global economy
- Why
- To assess economic conditions and inform monetary policy decisions
- Inflation Rate (December 2025)
- 2.7% year-on-year
- Core Inflation Rate (December 2025)
- 2.6% year-on-year
- Monthly Headline CPI Increase
- 0.3%
- Monthly Core CPI Increase
- 0.2%
- Fed's Inflation Target
- 2%
- Projected Global Growth (2026)
- 2.6%
- Projected Global Growth (2027)
- 2.7%
- Projected Global Inflation (2026)
- 2.6%
Sources
Over 57% cite financial stress; inequality named top economic concern: WEF Survey
Global economy holds up despite trade tensions, but developing world still lags: World Bank
US inflation eases in December as core prices show slowdown
US inflation holds steady at 2.7% in December, keeps Fed on cautious rate-cut path – Firstpost
World faces massive jobs test as 1.2 billion young people near working age: World Bank
Davos 2026: World faces stormy next decade, geoeconomic confrontation now top risk, warns WEF
Economic confrontation replaces armed conflict as top risk in WEF survey