The consumer price index (CPI), a key inflation gauge, rose 2.7% last month, the same rate as in November, said the labor department.

On a month-on-month basis, CPI was up 0.3%.

While prices have not surged in the final months of 2025, inflation crept up during the year as Trump imposed wave after wave of tariffs on US imports, hitting goods from virtually all trading partners.

However, the Trump administration has, in recent months, widened a slate of exemptions covering key agriculture products and other items as cost-of-living concerns gripped households.

Businesses have reported higher costs, although many have tried to soften the blow by stocking up on inventory ahead of planned hikes in duties, and avoided passing on the full additional costs to consumers.

In December, the index for shelter was the biggest factor behind the monthly inflation uptick, today’s report said.

Stripping out the volatile food and energy segments, CPI rose 2.6% from a year ago.