NEW YORK (Bloomberg) — Tuesday, January 13, 2026
U.S. inflation data released today shows consumer prices held steady in December, rising 2.7% year-over-year, defying hopes for a year-end cool-down and complicating the Federal Reserve’s rate-cut timeline.
The latest Consumer Price Index (CPI) report indicates that while goods prices have stabilized, the costs of services—particularly housing and insurance—remain stubbornly high. This “sticky” inflation reading has dampened Wall Street’s expectations for an interest rate cut at the Fed’s upcoming meeting.
“The ‘last mile’ of fighting inflation is proving to be the hardest,” said chief economist Diane Swonk. “With CPI holding at 2.7%, the Fed is likely to keep rates higher for longer, which will continue to squeeze household budgets.”
Markets reacted cautiously to the news, with the S&P 500 opening slightly lower on Tuesday. The data puts the central bank in the crosshairs of the administration, which has publicly urged for looser monetary policy to stimulate growth ahead of the midterm election cycle.
