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Month-to-month data reflected some unusual factors. The Democrat-led government shutdown in October 2025 disrupted normal data collection, forcing the cancellation of that month’s CPI report. As a result, the reported month-over-month increases—0.2 percent for both headline and core CPI—cover a two-month span from September to November, with some adjustments based on available non-survey information.
The November numbers fit into a larger trend of slowing inflation observed throughout 2024 and 2025. Annual CPI figures had hovered around 3 percent for much of last year, driven by lingering supply chain disruptions and post-pandemic demand surges. Now, the downward trajectory signals that price pressures are steadily easing.
Economists say the latest data could give the Federal Reserve room to adjust policy in favor of economic growth. The decline in core inflation, which central bankers closely monitor, suggests underlying price pressures are weakening, potentially opening the door for interest rate cuts or other supportive measures.
Markets quickly reacted to the report, with investors signaling increased expectations for easing monetary policy in early 2026.
“I was surprised. It was a better number than anyone was expecting,” Harvard Professor of Economics Ken Rogoff told CNN. “But, you know, people were expecting it to be above 3 percent. It was well below 3 percent. I mean, I think the president will take this as good news. The investors will think that interest rates will get cut more,” he continued. “So, you know, it was it was a positive news. There’s no other way to spin it.”
The November CPI report offers a rare piece of encouraging economic news for Americans, signaling that inflationary pressures may finally be easing after years of uncertainty and high costs. For families and businesses alike, this could translate into more predictable prices and a more stable financial environment moving into 2026.
