CPI Holds at 2.7% as Food Costs Bite, Bitcoin Nears $96K

U.S. inflation held steady in December, with the Consumer Price Index showing a 2.7% year-over-year rise. Core CPI, which strips out food and energy, eased slightly to 2.6%, just under forecasts. The Bureau of Labor Statistics highlighted food costs as the main pressure point, with grocery prices climbing 0.7% in December. Eggs were the outlier, dropping 8.2% in the month and nearly 21% over the year, after supply shocks in 2024 finally unwound.

For households, the math is simple: a refrigerator that cost $1,000 last year now runs about $1,027. That cumulative bite is why inflation feels sticky even when the headline number looks flat. Rising unemployment adds another layer, leaving consumers squeezed between higher bills and weaker job security.

Markets took the report as confirmation that the Federal Reserve is unlikely to cut rates at its next meeting. Traders had penciled in just one rate cut for 2026, but the tone may shift. President Donald Trump seized on the flat CPI print to argue for faster easing, while Fed officials remain cautious about declaring victory over inflation.

Bitcoin stole the spotlight in parallel trading, coming close to $96,000 for the first time in 2026. The move came as investors weighed the Fed’s stance against a backdrop of slowing inflation and persistent political pressure. Crypto desks from Coinbase to Binance reported heavy inflows, with traders betting that even a modest shift in Fed guidance could fuel another leg higher.

If inflation continues to cool while growth softens, the Fed’s one-cut forecast could prove outdated. A pivot toward two or more cuts would ripple across equities, bonds, and digital assets alike. For now, the CPI print keeps the Fed on hold—but Bitcoin’s surge suggests markets are already gaming out the next move.