U.S. Inflation Eases to 2.7% in November Amid Data Collection Challenges

In November 2025, the U.S. Consumer Price Index (CPI) increased by 2.7% compared to the previous year, marking a decrease from the 3.0% rise observed in September. This moderation in inflation comes amid data collection challenges stemming from a 43-day federal government shutdown, which delayed the release of October's CPI report and may have impacted the accuracy of the November figures.

The shutdown disrupted the Bureau of Labor Statistics' operations, leading to the cancellation of October's CPI and unemployment rate releases—a first in the agency's history. Economists caution that the delayed data collection, which extended into the holiday discount period, could have skewed the November inflation figures.

Despite the reported easing of inflation, many Americans continue to face affordability challenges. A recent NPR/PBS News/Marist poll indicates that 71% of respondents find their income just matches or falls short of their monthly expenses.

In response to economic conditions, the Federal Reserve has adjusted its monetary policy. On December 10, 2025, the Fed lowered its benchmark interest rate by a quarter percentage point to a target range of 3.5% to 3.75%. This decision reflects the central bank's efforts to balance inflation control with economic growth.

Looking ahead, President Donald Trump has indicated that the next Federal Reserve chair will be someone who supports significantly lower interest rates, aiming to reduce mortgage payments. While no successor to current Fed Chair Jerome Powell has been announced, potential candidates include Kevin Hassett, Kevin Warsh, and Chris Waller, all of whom have varying degrees of support for lower interest rates.