The Bureau of Labour and Statistics has put out relevant consumer price index data for December 2025, finally completing annual inflation data for 2025, as per an official press release.
The CPI recorded an increase of 2.7% for the year, with increases of 2.3% and 3.1% across energy and food indexes, respectively. The index that includes all items except food and drink increased by 2.6%.
Entrepreneur Anthony Pompliano does not consider the 2.7% figure put forward by the Bureau to be accurate, suggesting that errors when collecting data and other mistakes definitely skew the results when calculating overall inflation. In the place of the CPI figure, He suggested the Truinflation U.S. CPI Index which had actual inflation at 1.74%, roughly a “100 basis points” lower.
The BLS has acknowledged that there could be errors in the data due to incomplete retail prices.
“The CPI is a statistical estimate that is subject to sampling error because it is based upon a sample of retail prices and not the complete universe of all prices. BLS calculates and publishes estimates of the 1– 5 – month, 2-month, 6-month, and 12-month percent change standard errors annually for the CPI-U,” read the report.
The update comes at a critical time when Jerome Powell faces fresh scrutiny after the U.S. Department of Justice opened a criminal investigation over the issue of renovating the Federal Reserve’s buildings, a project proposed by Powell. The investigation is focused mainly on the costs and budgets for the renovation, which is believed to be inaccurate and misleading.
Powell has responded formally, saying that the complaint raised was a result of the pressure exerted by U.S. President Donald Trump, who does not believe that the Federal Reserve is handling monetary policy well, made apparent by his several statements across his second term.
“This new threat is not about my testimony last June or about the renovation of the Federal Reserve buildings. It is not about Congress’s oversight role; the Fed through testimony and other public disclosures made every effort to keep Congress informed about the renovation project,” Powell said in his formal response.
“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,”
Jerome Powell ends his term as chairman in May this year—he will continue to occupy a board position with the reserve—but a fresh complaint raised just as he is about to leave office casts doubt; Will the Federal Reserve be able to carry out its duties as before?
U.S. President Donald Trump has been looking to give Jerome Powell a quick exit from his position, repeatedly claiming that he is incompetent and unfit for the role.
Currently, the federal funds rate stands at 3.5 – 3.75% after a rate cut in December.