2026.01.1313:30:00UTC+00U.S. CPI Turns Negative in December, Struggling Consumer Demand Hits Inflation

The latest United States Consumer Price Index (CPI), not seasonally adjusted, recorded a rare decline in December 2025, sending a noteworthy signal about the country's economic landscape. As per the data updated on January 13, 2026, the CPI fell to -0.02% month-over-month, down from a previous increase of 0.25% observed in November 2025.

This shift into negative territory suggests a significant cooling in consumer demand, contributing to reduced inflationary pressure for the month. The December drop marks a stark contrast to the previous month, when inflation figures indicated steady economic growth. Analysts suggest this downturn may point to consumers' growing caution amid economic uncertainties as the new year begins, potentially affecting the Federal Reserve's policy decisions and broader market strategies moving forward.

The decrease, though modest, highlights the dynamic and often unpredictable nature of economic indicators, with December's figure disrupting an otherwise steady inflation trend observed in recent months. Market observers and policymakers alike will be watching closely for further developments in the coming months, as they assess the ripple effects of cooling inflation on the broader U.S. economy.