Consumer Price Index shows ongoing increases throughout 2025

U.S. Consumer Prices Continue to Climb in 2025

In 2025, the Consumer Price Index for All Urban Consumers increased by 2.7%, as detailed in an annual summary from the U.S. Bureau of Labor Statistics released on Tuesday.

This overall rise was primarily attributed to a 0.4% uptick in the shelter index during December. Both food and energy sectors also played a role in the yearly inflation.

Food and Dining Costs Rise

Throughout the year, food prices climbed by 3.1%, accelerating from the 2.5% increase seen in 2024, according to official data. Grocery prices at home were up 2.4% in 2025, compared to a 1.8% rise the year before. Eating out became more costly as well, with restaurant prices jumping 4.1%, outpacing the 3.6% growth recorded in 2024.

Energy Prices Reverse Course

Energy expenses saw a notable turnaround, rising 2.3% in 2025 after a 0.5% decrease in 2024. Electricity costs surged by 6.7%, and natural gas prices soared 10.8% over the past year. On the other hand, gasoline prices dropped by 3.4%, mirroring the previous year's decline.

Other Key Index Changes

• The index excluding food and energy grew by 2.6% year-over-year.
• Shelter and medical care both increased by 3.2%.
• Recreation costs rose 3.0%, with December marking the largest single-month jump on record at 1.2%.

Supply Chain and Transportation Trends

These inflationary pressures are linked to ongoing changes in supply chain dynamics. A December survey of supply chain professionals revealed that transportation capacity dropped to its lowest point since October 2021.

The Logistics Managers’ Index reported a capacity reading of 36.9, signaling contraction in the sector. At the same time, transportation costs reached their highest levels since January 2025, with December’s freight market described as the strongest in over three years.

Looking Ahead

Consumer demand exceeded expectations throughout 2025, likely intensifying pressure on transportation networks. Forecasts for the coming year anticipate a “significant shift in transportation markets,” with predictions of tighter capacity and increased pricing.