According to the most recent consumer price statistics released by the Bureau of Labor Statistics on Thursday, inflation pressures decreased more than anticipated in November.
According to Bloomberg, the Consumer Price Index (CPI) increased 2.7% in November compared to the previous year, which was less than the 3.1% increase that economists had predicted.
In November, prices increased 2.6% over the previous year on a "core" basis, which eliminates the more erratic expenses of food and energy.
A 3.1% rise in core prices was also anticipated by economists. Since October's report was canceled due to the government shutdown, the data represented the first inflation reading since November.
This also meant that there were no month-over-month consumer pricing comparisons in Thursday's data. The headline and core CPI measures increased 3% in September, the final month for which inflation data is available, compared to the same period last year.
Following the 43-day government shutdown earlier this year, Thursday's report should also be the last time significant economic data, particularly the monthly jobs report and inflation data, is released on a modified schedule.
Tuesday saw the release of the November jobs report, which revealed that while the unemployment rate reached a four-year high, more jobs were created last month than anticipated. The December jobs report will once again be released on a Friday morning on January 9, 2026.
"Inflation is still above target but this should be temporary," LPL Financial chief economist Jeffrey Roach stated. "As demand cools in the coming months, pricing pressures should ease, giving investors some breathing room."
The core personal consumption expenditures (PCE) index, which is published by the Bureau of Economic Analysis in the last week of every month, is used by the Federal Reserve to gauge inflation, which is set at 2%.
Prior to the announcement, Bank of America economists predicted that while services "should be softer driven in part by health insurance," goods inflation "should remain sticky owing to tariffs."
With traders presently pricing in a roughly 25% possibility that the central bank would lower rates next month, this push-pull dynamic within the inflation statistics is likely to keep the Fed on the sidelines at the conclusion of its January meeting.
After lowering rates by 0.25% at three consecutive sessions to conclude 2025, the Fed's projections this week indicated it would only lower rates once more in 2026.
