The December CPI report is "pretty confusing" with the softer reading due to good prices, Tiffany Wilding, economist at PIMCO, said in an interview with Bloomberg. "It was a mixed bag," with uneven pass-through to consumers of higher tariffs on goods.

December CPI shows cooling inflation—headline 2.7% and core 2.6%—with muted markets and a likely Fed pause. Click for a full analysis of the latest data.

The Singapore dollar consolidated against its U.S. counterpart in the Asian session as traders assess the U.S. CPI data released overnight.

The inflationary trends in the US are crucial for the Federal Reserve's decisions regarding interest rates in 2026.

Bitcoin’s rally drew fuel from short covering as steady inflation data and the start of earnings season reinforced trader expectations.

The 10-year Treasury yield is up 1.8 basis points to 4.20% early on Tuesday, right at the top of the 4.0% to 4.2% range it has inhabited for more than two months. Whether benchmark borrowing costs will break out of that range will likely depend on the consumer price index data for December,

CPI Helped Bonds Avoid Losing Ground Bonds began the day in slightly weaker territory and managed to flip into slightly stronger territory after the CPI data. Core monthly CPI printed at 0.2, but was rounded down from 0.

Core CPI inflation unexpectedly held at a low 2.6% in December. That's boosting S&P 500 futures and Federal Reserve rate-cut odds.