Prices rose 2.7% in December from a year ago, a sign that inflation continues rising but in line with the pace seen in recent months.

Inflation held steady in December, continuing to prove stubborn just days after reports of a Department of Justice probe into Federal Reserve Chair Jerome Powell.

So-called core inflation, or CPI data that excludes volatile food and energy prices, rose by 2.6% over the past 12 months, according to the Bureau of Labor Statistics. Economists polled by FactSet had predicted a 2.7% increase for that measure.

The final Consumer Price Index report of 2025 caps off a year in which inflation gradually eased but remained uneven across the economy.

The report is the last of its kind before the Federal Reserve meets again in two weeks. With the employment report for December showing the unemployment rate sinking back to a relatively healthy 4.4 percent, officials are expected to hold interest rates steady after cutting them three times since September.

US consumer prices rose 2.7% annually in December, closing out a year that saw slight progress on inflation but continued affordability concerns for many Americans.

The benchmark 10-year Treasury yield ticked higher as investors await key inflation data that will offer crucial insights on the health of the U.S. economy.

Key economic data are due this week, including two inflation readings. The U.S.'s largest banks are also scheduled to report earnings, starting with JPMorgan Chase. Later this week, results from Taiwan Semiconductor Manufacturing,

Stocks are holding near their records on Wall Street following the latest update on inflation, one that could keep the door open for the Federal Reserve to cut interest rates further later this year.