Consumer Prices Rose by 2.7% in November, Less Than Expected

Washington, DC, December 18, 2025-"Consumer prices rose 2.7% in November from a year earlier, according to a delayed government report, slowing from 3% in September,” reports the Wall Street Journal.

“Stripping out volatile food and energy costs, the core measures of prices over the year increased 2.6%.

“The headline reading was lower than the 3.1% that economists polled by The Wall Street Journal had expected. They had expected a 3.0% increase in core prices.

“The Labor Department, which usually publishes its inflation data earlier in the month, didn’t break out changes for October because officials weren’t able to collect prices in the field during the long government shutdown that lasted until Nov 12.

“Rising prices have become a concern for more and more Americans, so much so that discontent over affordability has shaped local elections and forced the Trump administration to re-examine its messaging on the economy. While annual inflation is down from the runaway levels of 2022, it is still above the level that policymakers feel comfortable with.

“Some companies have already raised prices on consumers as a way to deal with Trump’s new tariffs. Other companies are waiting to see how tariffs settle before raising prices in order not to scare away customers. The start of the year tends to be the time for businesses to adjust prices, so inflation could go even higher from here.

“A 10% tariff on global imports went into effect in April, while much higher rates on major trading partners and important products like steel and aluminum kicked in over the course of months.

“Prices for goods including carpets, clothing, coffee and other tariff-exposed products are up sharply from where they would have been had there not been tariffs, according to a Harvard analysis of data from major U.S. retailers through October.

“Economists have also been worried about price increases seeping from goods into services, which cover amenities like haircuts, daycare, airfares, car insurance and more. Some of that increase, economists say, may be due to the Trump administration’s crackdown on immigrants, who fill roles as landscapers, home health aides and other services jobs.”