#CPIWatch 📈 CPI Watch: Navigating the Long-Term Inflation Landscape

📊 The Big Picture (Dec 2025 Update)

The latest data shows a cooling trend, but the "last mile" of the inflation fight is proving to be the hardest. Here is the breakdown of where we stand and where we are headed.

Current Headline CPI: 2.7% (Lowest since July)

Current Core CPI: 2.6% (Excludes food/energy)

2026 Projection: ~2.6%

2027 Projection: ~2.4%

🔍 Key Drivers to Watch

Shelter & Rent: This remains the biggest "sticky" factor. While it has cooled from 3.6% to 3.0%, it is still the primary driver keeping inflation above the 2% goal. 🏠

Energy Volatility: Recent spikes in fuel oil (+11.3%) and natural gas (+9.1%) show that energy can still provide upward pressure, even as overall inflation drops. ⚡

The Fed’s Game Plan: The Federal Reserve has lowered rates to the 3.5%–3.75% range. Expect a "pause" in early 2026 as the Fed monitors the impact of recent cuts and prepares for a leadership change in May 2026. 🏦

💡 What This Means For You

Purchasing Power: While prices are still rising, they are doing so at a much slower pace. Your dollar isn't shrinking as fast as it was in 2022. 💵

Interest Rates: If the 2.4%–2.6% trend holds, we could see mortgage and auto loan rates soften further toward the end of 2026. 📉

Investment Strategy: Diversification is key. "Sticky" inflation often favors real assets and short-to-medium duration bonds. 💎

📅 Mark Your Calendars: The next major CPI release for December 2025 data is scheduled for January 13, 2026.#JeromePowell #MarketSentimentToday #BTC $BTC