U.S. Consumer Prices Rise 2.7% in November Amid Data Collection Challenges

In November 2025, the U.S. Consumer Price Index (CPI) rose 2.7% year-over-year, falling short of economists' forecasts of a 3.1% increase. Core CPI, which excludes food and energy prices, increased by 2.6% over the same period.

The Bureau of Labor Statistics (BLS) faced data collection challenges due to a 43-day government shutdown, leading to the cancellation of the October CPI report. The BLS was unable to retroactively collect October data but utilized alternative data sources for November's calculations.

Economists caution that the absence of October data may affect the reliability of November's figures. Despite the reported slowdown in inflation, consumers continue to experience high costs for essentials such as food, insurance, and utilities.

In response to economic conditions, the Federal Reserve recently reduced its benchmark interest rate by 25 basis points to a range of 3.5%–3.75%. Boston Federal Reserve President Susan Collins described the decision as a "close call," indicating a cautious approach to future rate adjustments.

Market reactions to the inflation report were notable. Stock futures rose, with S&P 500 futures up approximately 0.5% as of 8:39 a.m. ET. Treasury yields declined, with the 10-year note yield trading around 4.11%.

Investors are closely monitoring these developments for insights into future monetary policy decisions by the Federal Reserve.