U.S. inflation unexpectedly slowed to 2.7% in November 2025, down from 3% in September, surprising economists with a cooler-than-expected rate, driven by easing food/shelter costs but still above the Fed's 2% goal, though the October data was missed due to a government shutdown, making this November report crucial but somewhat incomplete.
Key Details:
Headline Rate: Consumer prices rose 2.7% year-over-year in November, falling from 3% in September.
Core Inflation: The core CPI (excluding volatile food & energy) also cooled, slowing to a 2.6% annual rate from 3% in September.
Unexpected Slowdown: The 2.7% figure beat expectations, with analysts predicting closer to 3% or higher.
Data Gaps: The October CPI report was skipped due to a federal government shutdown, making the September-November comparison a key look back.
Factors: While energy prices rose, easing food and shelter costs helped bring the headline number down.
Impact: This slowdown offers some relief for consumers facing high living costs, but inflation remains above the Federal Reserve's target.
