Inflation has been a sore subject for years. Life is expensive, and seems to just get more expensive.
So when new inflation numbers come out, people just want to know: Is it finally getting better?
The December 2025 inflation report suggests the answer is yes, slowly, and without the tariff blowback critics predicted.
The consumer price index report for December delivers three clear conclusions:
✅Tariffs are NOT driving inflation.
✅Overall inflation is running near the Fed’s target.
The data supports a rate CUT at the Fed’s Jan. 28 meeting.
Read more⬇️…
— Peter Navarro (@RealPNavarro) January 14, 2026
According to the U.S. Bureau of Labor Statistics, consumer prices rose 0.3 percent in December.
Over the past year, inflation stands at 2.7 percent, unchanged from November.
That puts inflation much closer to the Federal Reserve goal of around 2 percent, and far below the levels Americans saw just a few years ago.
Even more telling is what happened with core inflation, which strips out food and energy.
Core prices rose 0.2 percent in December, below expectations, and are up 2.6 percent over the past year.
That’s the lowest annual core inflation rate in roughly four years.
This matters because core inflation gives a clearer picture of long term price pressure.
It also undercuts a long running claim that tariffs would cause prices on everyday goods to surge.
Core goods prices were flat compared to a year ago.
In plain terms, the stuff people buy at stores isn’t broadly getting more expensive.
If tariffs were driving inflation, this is where it would show up first. The data doesn’t show that.
That point was highlighted this week by Peter Navarro, President Trump’s senior counselor for trade and manufacturing.
Navarro argued that flat core goods prices show tariffs aren’t pushing inflation higher.
While the BLS doesn’t analyze tariff policy directly, the price data itself confirms that goods prices haven’t spiked.
Some costs are still climbing. Food prices rose 0.7 percent in December and are up about 2.4 percent over the past year.
Anyone shopping in Las Vegas can feel that, especially with meat and dairy.
Shelter costs remain the biggest driver of inflation, rising 0.4 percent in December and 3.4 percent over the year.
Housing is a major issue in Nevada. Rents in Clark County and home prices across the state have stayed high, even as inflation cools elsewhere.
Housing costs tend to move slowly, so relief takes time.
Energy prices offered some help. While energy rose slightly in December, prices are lower than a year ago, helping keep overall inflation in check.
Because inflation is now closer to the Fed’s target, some conservatives are urging the central bank to consider easing interest rates.
Lower rates could reduce pressure on mortgages, car loans, and business borrowing.
That would matter in Nevada, where construction, tourism, and manufacturing depend heavily on financing.
High rates can delay projects and hiring. Still, most economists expect the Fed to hold rates steady at its late January meeting and reassess later in the year.
Critics argue inflation is still too high, and warn that easing policy too quickly could reignite price increases.
They also point to food, housing, and utility costs as proof families are still struggling.
Conservatives counter that today’s inflation reflects lingering effects of earlier spending and supply disruptions, not current trade policy.
They also note that inflation is far lower than it was, wage growth has improved, and price pressures are no longer spreading across the economy.
President Donald Trump praised the report publicly, pointing to falling inflation as evidence that his economic approach is working, and urging the Fed not to hold growth back unnecessarily.
The bottom line: Inflation isn’t gone, but it’s also not running wild.
Goods prices are stable. Core inflation is cooling. And the dreaded tariff-driven price surge never showed up in the data.
After years of being told disaster was just around the corner, this report looks more like proof that things are working out.
The opinions expressed by contributors are their own and do not necessarily represent the views of Nevada News & Views. Digital technology was used in the research, writing, and production of this article. Please verify information and consult additional sources as needed.
