Inflation cooled in November, delayed report shows
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The Consumer Price Index cooled in November, signaling easing inflation, the Bureau of Labor Statistics said on Thursday.
Why it matters: The first inflation report since the government reopening shows easing price hikes as the White House faces growing pressure to address affordability concerns.
By the numbers: CPI increased 2.7% in the 12 months ending in November, while core CPI — which excludes food and energy prices — rose by 2.6%.
- Both measures rose by 3% in September, according to the report that BLS staffers were legally mandated to release, despite the shutdown.
- Overall inflation has been increasing since April, when the annual rate hit 2.3%, the lowest in nearly four years. This month breaks that streak, with inflation now at its lowest since July.
Zoom in: The government canceled the October CPI report, a consequence of the government shutdown. Furloughed workers were unable to collect price data for many categories, which helps determine how costs changed over the month.
- For that reason, the BLS was unable to publish a figure that shows how much prices changed last month relative to October.
- The agency did say, however, that both CPI and core CPI rose by 0.2% over the past two months.
The big picture: The report comes at a critical time for the U.S. economy.
- Americans continue to give low marks on the Trump-era economy, a result of consumer frustration with high prices.
- The White House has rolled back tariffs on key grocery items, an implicit acknowledgment that the trade policies were putting upward pressure on prices.
- From September to November, the index for food prices increased just slightly, by 0.1% — a notable cooling in grocery price pressures, especially relative to the 0.5% increase in August.
- Trump went on the offense in a televised address on Wednesday night: "Eleven months ago, I inherited a mess, and I'm fixing it."
What to watch: The Fed cut rates for the third time this year last week, though there was more division over that decision than there has been in years. Some officials have raised concerns that inflation remains too high.
- Fed chair Jerome Powell said tariffs were a key reason why inflation was still above the central bank's 2% target.
- "It's really tariffs that are causing the most of the inflation overshoot," Powell said at a press conference last week, though he said he anticipates tariff-related price increases will be a one-time phenomenon.
Editor's note: This story has been updated with additional details.
