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

While inflation remained well below the highs reached in 2022 and 2023, it also proved more stubborn than many forecasters expected in 2025.

Price hikes picked up speed for US-based businesses toward the end of last year, a potential signal that inflation has yet to peak and prices could soon rise faster for consumers.

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.

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.

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.

An inflation report on Tuesday is set to provide a key gauge of the nation’s economy, just days after the Department of Justice's probe into Fed Chair Powell.