Inflation Cools More Than Expected, Offering Encouraging Economic Signs

by Emmitt Barry, Worthy News Washington D.C. Bureau Chief

(Worthy News) – U.S. inflation cooled more than expected in November, delivering encouraging news for American consumers and reinforcing confidence in financial markets. A delayed Labor Department report showed the Consumer Price Index rose 2.7% from a year earlier—down from 3% in September and below economists’ 3.1% forecast—while core inflation, which excludes volatile food and energy prices, also came in lower than anticipated at 2.6%, signaling continued progress in easing price pressures.

The report was released later than usual because the government shutdown prevented Labor Department workers from collecting some price data in the field, and there was no October CPI report. Economists noted that alternative data-collection methods may have understated inflation, but markets appeared unfazed. Stocks traded moderately higher, and interest-rate futures showed only slight movement, signaling investor confidence and stability.

Economists described the report as a modest positive rather than a game-changer. Alan Detmeister of UBS said the data may provide a “minor downward sign” for inflation, but emphasized that much of the movement should be viewed as statistical noise rather than a trend reversal.

Energy prices rose 4.2% over the year, driven by increases in fuel and electricity, while food prices climbed 2.6%. Dairy prices, however, declined. Despite easing from the inflation surge of 2022, prices remain above the comfort level of policymakers, keeping affordability a top concern for many Americans.

Under President Donald Trump, the administration has emphasized economic strength, job growth, and long-term stability, even as some companies adjust prices in response to new tariffs. Officials have argued that tariffs are part of a broader strategy to protect U.S. industry and workers, while inflation pressures remain manageable.

Federal Reserve policymakers continue to monitor inflation closely, particularly the risk that expectations of higher prices could become entrenched. Still, November’s report suggests inflation is not spiraling out of control, reinforcing optimism that the U.S. economy remains resilient heading into the new year.

Copyright 1999-2026 Worthy News. This article was originally published on Worthy News and was reproduced with permission.

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