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.

Consumer price likely rose 2.7% in the 12 months through December, according to forecasts, as inflation remains well above the Federal Reserve's target.

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.

Consumer prices rose 2.7% from a year earlier, matching the consensus estimate of economists polled by The Wall Street Journal. On a core basis, excluding volatile food and energy prices, the inflation rate was 2.

Follow live coverage and news of the December release consumer price index, scheduled for Tuesday at 8:30 a.m. Eastern time. The inflation data is being watched by the Fed for its interest-rate policy.

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.

While the U.S. CPI inflation report on Tuesday showed a slightly softer-than-expected annual increase in core prices, there's little reason for consumers or policymakers to cheer.