The Consumer Price Index for All Urban Consumers rose 2.7 percent in the year 2025, according to an annual report from the U.S. Bureau of Labor Statistics published on Tuesday.
The report stated that the overall increase was largely driven by a 0.4 percent rise in the shelter index recorded in December. The food and energy indexes also contributed to the yearly increase.
For the year, the food index increased 3.1 percent. This marks an acceleration from 2024, when food prices rose 2.5 percent. The cost of food at home rose 2.4 percent in 2025, compared to a 1.8 percent increase the previous year. Dining out also became more expensive, with the food away from home index climbing 4.1 percent, up from a 3.6 percent rise in 2024.
Energy costs saw a significant reversal, increasing 2.3 percent in 2025 after falling 0.5 percent in 2024. The electricity index rose 6.7 percent and the natural gas index jumped 10.8 percent over the last 12 months. In contrast, the gasoline index fell 3.4 percent, matching its rate of decline from the prior year.
The index for all items less food and energy rose 2.6 percent over the last year. Notable increases included shelter at 3.2 percent, medical care at 3.2 percent, and recreation at 3.0 percent. The recreation index saw its largest-ever one-month increase in December, rising 1.2 percent.
These price pressures correspond with shifts in the supply chain. According to a December survey of supply chain managers, transportation capacity plummeted to its lowest level since October 2021.
The Logistics Managers’ Index indicated contraction in December. Simultaneously, transportation pricing rose to its highest level since January 2025, with the report suggesting December’s freight market was the strongest in over three years.
Consumer demand was stronger than anticipated throughout 2025, which likely contributed to the strain on transportation. A forecast for the year ahead predicts a “significant shift in transportation markets,” with expectations for tighter capacity and higher pricing.
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