US CPI Rises 0.4% in December; Annual Inflation Unexpectedly Accelerates

U.S. consumer prices increased 0.4% in December 2025, with annual inflation unexpectedly ticking higher, signaling persistent price pressures. The data, released on February 20, 2026, contradicts market expectations for a cooling trend and complicates the Federal Reserve's interest rate trajectory. The monthly surge and the unexpected uptick in year-over-year growth suggest that underlying inflation remains resilient. Investors now face increased uncertainty regarding the timing of potential monetary policy adjustments by the central bank.