On January 13, the U.S. federal government released its first report since last August on regional price and inflation data.
In December 2025, inflation in South Florida was 2.6% compared to 2024, a slight increase from the last report. This level of 2.6% remains above the Federal Reserve’s 2% target. It should be noted that the December report is the first since August, as October data was not collected due to the government shutdown.
Causes and effects
WLRN reports that the upward trend in prices is not solely due to the tariffs imposed by Trump. According to experts, tariffs are responsible for about 8% of the increase in clothing prices in the Miami metropolitan area over the past year. But other non-import-related sectors have also continued to rise: medical care has increased by nearly 4%; housing by about 3.4%; groceries by +4%, with a 14% surge in meat and eggs, but prices for milk, fruits, and vegetables have fallen; services (health, education, insurance) rose by about 3%; gasoline prices have fallen since November. Finally, in the southeastern part of the state, core inflation (excluding food and energy) stands at 2.5%.
Raphael Bostic, president of the Federal Reserve Bank of Atlanta, believes that inflation remains too high and that price pressures are not solely driven by tariffs. He told WLRN: « Inflation is too high. We need to get it under control and focus on everything that can contribute to that. » To that end, the Fed, which has already lowered its key interest rate three times since September, will meet in late January to reassess its policy.
The importance of Fed independence
The Federal Reserve meeting will take place soon, as the Trump administration steps up pressure on the Fed to cut rates. On January 9, the bank received a subpoena to appear before a grand jury to provide information about the renovation of its headquarters in Washington, D.C., threatening its chairman, Jerome Powell.
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said on NPR: « The Fed’s independence is extremely important for the long-term inflation rate in this country. Wherever the central bank is not independent, inflation comes back with a vengeance. We’ve spent the last five years struggling to bring down the inflation rate, and it hasn’t been easy. And if you attack the Fed’s independence, it only makes the problem worse. »
What should we be paying attention to in the economy in 2026?
According to Goolsbee, the positive aspect of the current economy is that the growth rate remains fairly strong, and that the powerful engine of economic growth is not actually just investment in AI data centers, for example, but rather in the continued spending of American consumers. For him, this was the strongest factor in 2025. He adds: “So I wonder if consumers will continue to be the engine of growth. And then, on the inflation side, are there signs that this surge in prices is behind us?”
Only 2026 will tell.
