Inflation Remains Steady While Food Prices Increase

Year-over-year consumer prices, as measured by the Consumer Price Index, rose 2.7% in December, unchanged from November, although monthly food prices jumped 0.7% in December 2025 from November. The year-over-year Personal Consumption Expenditures Price Index – the index used by the Federal Reserve to measure inflation, showed a 0.2% gain in November, while the average cost of a gallon of regular gasoline in the U.S. fell 4 cents to $2.89 per gallon in December 2025 from November 2025, according to the U.S. Energy Information Administration. The data indicates that overall inflation is holding steady after slight increases during the summer, and gas prices are steadily decreasing.

What Does This Mean for Small Businesses?

Steady inflation may be a double-edged sword for many small business owners. On one hand, it means that non-food prices aren’t rising, and therefore, inventory costs aren’t generally increasing. However, the steady inflation numbers probably won’t prompt the Federal Reserve Board to lower interest rates, which means that the cost of financing won’t decrease any time soon.

Lowering gas prices may be good for small businesses such as trucking and construction companies that rely on low fuel costs. However, the CPI did show higher food costs, including the cost of fruits, vegetables, coffee and beef, despite steady inflation. Independent restaurants, grocery stores, artisan food companies and other small businesses in the food services sector may continue to struggle.