📊 Economic Indicators |
Bureau of Labor Statistics |
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In December 2025, the Consumer Price Index (a measure of what people pay for goods and services) rose 0.3% from November and 2.7% over the past 12 months. Prices excluding food and energy (called “core”) rose 0.2% in December and 2.6% year‑over‑year. Food costs were up 0.7% in December and 3.1% for the year (groceries +0.7% month, +2.4% year; eating out +0.7% month, +4.1% year). Energy rose 0.3% in December and 2.3% for the year, with gasoline down 0.5% in December (‑3.4% year) while natural gas jumped 4.4% in December ( +10.8% year). Shelter, the biggest single driver, rose 0.4% in December and 3.2% for the year (owners’ equivalent rent +0.3% month). Other big moves: airline fares +5.2% (month), recreation +1.2% (largest one‑month jump for that index), communication ‑1.9%, and used cars ‑1.1%. In plain terms, prices are rising modestly overall, with housing and food pushing costs higher, so families may feel their paychecks don’t stretch as far and cost‑of‑living adjustments tied to the CPI could change. Read full document →
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In December 2025, pay after inflation (real pay) for all employees stayed the same from November because average hourly pay rose 0.3% but prices also rose 0.3%, so people’s buying power did not change; real weekly pay fell 0.3% because the average workweek was 0.3% shorter. Over the year from December 2024 to December 2025, real hourly pay was up 1.1% and real weekly pay was up 1.1%. For production and nonsupervisory (non‑supervisor) workers, real hourly pay fell 0.2% in December (nominal pay +0.1%, prices +0.2%), real weekly pay fell 0.1% for the month, and year‑over‑year real hourly pay rose 0.9% with weekly pay up 1.0%. This matters because when nominal pay and prices rise by the same amount, workers cannot buy more with their wages, shorter workweeks cut weekly take‑home pay, and the small year‑over‑year gains mean households can only buy slightly more than a year ago. Read full document →
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