The Labor Department reported that the Consumer Price Index increased 0.3% in December (seasonally adjusted), following a 0.2% reading in November. The all items index rose 2.7% over the past year (before seasonal adjustment), matching November’s annual pace. December’s monthly increase was driven largely by a 0.4% rise in the shelter index, which accounted for about 0.14 percentage points of the overall gain. The food index increased 0.7%, as both food at home and food away from home rose 0.7% on the month. The energy index climbed 0.3% in December, with natural gas prices up 4.4%, while gasoline declined 0.5% and electricity slipped 0.1%; energy prices increased 2.3% year-over-year. Core CPI (all items less food and energy) increased 0.2% in December and posted a 2.6% year-over-year gain, matching November’s annual pace. Categories showing notable annual increases included household furnishings and operations (+4.0%), medical care (+3.2%), shelter (+3.2%), recreation (+3.0%), and personal care (+3.7%).

The U.S. Census Bureau reported that new-home sales showed a slight decrease of 0.1% in October, reaching a seasonally adjusted annual rate of 737,000, following a rate of 738,000 in September. Sales were up 18.7% year-over-year. Regionally, new home sales saw an increase in the South (+16.9%), while declining in the West (-36.3%), Northeast (-14.3%), and Midwest (-9.0%). Year-to-date, an estimated 579,000 new homes have been sold in 2025, a decrease of 1.2% from the prior year. The average sales price for a newly constructed home increased to $498,000 in October from $483,500 in September. Similarly, the median new home sales price declined to $392,300 in October from $405,800 in September. The inventory of new homes for sale, seasonally adjusted, stood at 488,000 units, representing a 7.9-month supply, which was virtually unchanged from the supply reported for September.

The Labor Department reported that the Producer Price Index for final demand rose 0.2% in November, seasonally adjusted, following a 0.1% increase in October and a 0.6% advance in September. Over the 12-month period ending in November, the PPI increased 3.0% on an unadjusted basis. The November gain was driven primarily by goods prices, as prices for final demand goods climbed 0.9% while prices for final demand services were unchanged. More than 80% of the increase in goods prices was attributable to a 4.6% jump in final demand energy, while prices for goods excluding food and energy edged up 0.2%, and food prices were flat. Within services, gains in transportation and warehousing services (+0.3%) and services excluding trade, transportation, and warehousing (+0.3%) were offset by a 0.8% decline in margins for final demand trade services. The core PPI—which excludes food, energy, and trade services—advanced 0.2% in November after a 0.7% increase in October. For the 12 months ended in November, core PPI inflation accelerated to 3.5%, the strongest annual pace since March 2025.