US CPI Rises 0.3% in December, 2.7% Year-Over-Year

U.S. consumer prices rose 0.3 percent in December, matching economist expectations and holding steady at 2.7 percent from the previous year, according to data released Tuesday by the Bureau of Labor Statistics. The report, issued from Washington, showed inflation remaining above the Federal Reserve's 2 percent target amid ongoing economic pressures.

The monthly increase followed distortions from the 43-day government shutdown late last year, which had disrupted price data collection and led to lower imputed figures for October and November. With normal collection resuming, December's figures reflected a rebound, particularly in areas like rents and holiday-season pricing. Excluding volatile food and energy components, the core Consumer Price Index climbed 0.2 percent for the month and 2.6 percent year over year, slightly below forecasts of 0.3 percent and 2.7 percent, respectively.

Food prices drove much of the headline gain, surging 0.7 percent in December and 3.1 percent from a year earlier. At-home grocery costs rose 2.4 percent annually, while dining out increased 4.1 percent. Specific categories varied: meats, poultry and fish jumped 6.9 percent year over year, while egg...