Inflation dropped for the 6th consecutive month in December


Inflation dropped to an annual rate of 6.5 percent in December, its sixth straight decline in as many months, the U.S. Labor Department said Thursday.
The December rate was down from 7.1 percent in November, while the consumer-price index, which measures what consumers pay for goods and services, rose at its slowest pace since October 2021, The Wall Street Journal reports, per the Labor Department.
The core CPI, which removes fluctuating food and energy prices, rose by 5.7 percent last month from a year earlier, in line with expectations.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The welcome news comes in the wake of declining gas prices and airfares, both of which have helped rampant inflation "meaningfully moderate," notes The New York Times. Still, it's probably too early to assume rising prices are totally under control, CNBC reports, per financial analyst Greg McBride.
"To truly feel as if we've hit peak inflation, we've got to see sustained improvement over a period of months, and across an expanding range of goods and services," McBride said.
Fed officials will soon decide whether to again raise interest rates at their meeting on Feb. 1, as they indicated they might in December, per the Journal. To that end, it seems the bank is likely at that point to opt for a smaller, quarter-percentage-point increase, rather than one of the larger revisions it made throughout last year.
"I expect that we will raise rates a few more times this year, though, to my mind, the days of us raising them 75 basis points at a time have surely passed," Patrick Harker, president of the Federal Reserve Bank of Philadelphia, said Thursday. "In my view, hikes of 25 basis points will be appropriate going forward."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brigid Kennedy worked at The Week from 2021 to 2023 as a staff writer, junior editor and then story editor, with an interest in U.S. politics, the economy and the music industry.
-
Today's political cartoons - April 16, 2025
Cartoons Wednesday's cartoons - Trump's medical exam, student loan debt, and more
By The Week US
-
Christian dramas are having a moment
Under The Radar Biblical stories are being retold as 'bingeable' seven-season shows
By Chas Newkey-Burden, The Week UK
-
Money dysmorphia: why people think they're poorer than they are
In The Spotlight Wealthy people and the young are more likely to have distorted perceptions
By Chas Newkey-Burden, The Week UK
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
By Peter Weber, The Week US
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US
-
How will the Fed manage Trump's economy?
Today's Big Question Jerome Powell is 'in a bind'
By Joel Mathis, The Week US
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US
-
Why is the threat of stagflation rising?
Talking Points Inflation is sticky. Trump's tariffs won't help.
By Joel Mathis, The Week US
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US
-
Pros and cons of tariffs
Pros and Cons As Trump imposes tariffs on cars from overseas, here are the arguments for and against duties
By The Week UK
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US