Inflation cooled slightly in December though remains above Fed’s target

By CHRISTOPHER RUGABER, Associated Press Economics Writer

WASHINGTON (AP) — Inflation declined a bit last month as prices for gas and used cars fell, a sign that cost pressures are slowly easing.

FILE – A cashier rings up groceries in Dallas, Aug. 28, 2025. (AP Photo/LM Otero, File)

Consumer prices rose 0.3% in December from the prior month, the Labor Department said Tuesday, the same as in November. Excluding the volatile food and energy categories, core prices rose 0.2%, also matching November’s figure.