The final inflation report of 2025 could offer consumers and the Fed a clearer picture of how much prices climbed in December.

Economists expect the December CPI inflation report to show price growth remained elevated and cautioned it may have a downward bias due to missing data from the government shutdown.

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.

Tuesday’s data revealed that the cost of living for Americans ticked higher in December as the consumer-price index rose 0.3% last month, leaving the annual rate of inflation at 2.7%, well above the Federal Reserve’s 2% target.

Grocery prices jumped 0.7% from November to December, the biggest monthly increase since Aug. 2022, according to new Labor Department data. At the same time, gas prices moved in the opposite direction, falling from the prior month and running 3.4% lower than a year earlier.

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.

The Dow Jones index dropped Tuesday after a surprise CPI inflation report. Nvidia stock fell in morning trading.

New CPI report fuels political battle over affordability as Republicans and Democrats clash ahead of midterm elections, with inflation holding at 2.7%.