ECONOMY

Washington inflation gauge accelerates in December readings

PUBLISHED Feb 20, 2026, 9:33 AM ET

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Washington inflation gauge accelerates in December readings

Media Bias Meter

Sources: 6

Center 100%

Sources: 6

Washington. The Commerce Department on Friday reported a key inflation gauge accelerated in December, with monthly prices rising 0.4% after a 0.2% increase in November and annual inflation at 2.9%, up from 2.8%. Core prices, excluding food and energy, also rose 0.4% monthly and 3.0% annually. The release, delayed by last fall's six-week government shutdown, showed the largest monthly increases since February and the largest year-over-year core gain since March. Policymakers face evidence that inflation remains above the Federal Reserve's 2% target even as unemployment stays low. Markets responded with muted volatility. Based on 6 articles reviewed and supporting research.

By Mahnoor A. | JQJO News

Timeline of Events

2022: U.S. inflation peaked near 7%, prompting policy responses.
Last fall: A six-week government shutdown delayed the Commerce Department report.
November: Monthly inflation was 0.2%; annual inflation stood at 2.8%.
December (report released Friday): Monthly prices rose 0.4%; annual inflation rose to 2.9%; core annual inflation reached 3.0%.
Early January: Markets and policymakers noted inflation remains above the Fed’s 2% target despite low unemployment.

News Intelligence

Inflation affects your wallet. When it's high, your dollars buy less. The latest rise means everything from groceries to gas could cost more. Keep an eye on your budget and consider ways to offset these increases.

Media Bias

Articles Published:: 6
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 6

Who Benefited

Savers in interest-bearing accounts and holders of short-term fixed-income instruments benefited modestly, as higher inflation readings can coincide with rising interest rates and yields.

Who Impacted

Households and consumers, especially those on fixed incomes or with limited savings, suffered from rising consumer prices that reduce real purchasing power.

Media Bias

Articles Published:: 6
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 6
Distribution:: Left 0%, Center 100%, Right 0%

Who Benefited

Savers in interest-bearing accounts and holders of short-term fixed-income instruments benefited modestly, as higher inflation readings can coincide with rising interest rates and yields.

Who Impacted

Households and consumers, especially those on fixed incomes or with limited savings, suffered from rising consumer prices that reduce real purchasing power.