"'It's likely a bit distorted,' said Diane Swonk, chief economist at the tax and consulting firm KPMG. 'The good news is that it's cooling. We'll take a win when we can get it.' Still, Swonk added: 'The data is truncated, and we just don't know how much of it to trust.' By disrupting the economy - especially government contracting - the shutdown may have contributed to a cooling in prices, she said."
"U.S. inflation remains stubbornly high, partly because of President Donald Trump's decision to impose double-digit taxes on imports from almost every country on earth along with targeted tariffs on specific products like steel, aluminum and autos. The president's tariffs have so far proved less inflationary than economists feared. But they do put upward pressure on prices and complicate matters at the Fed, which is trying to decide whether to keep cutti"
The Labor Department's consumer price index rose 2.7% in November from a year earlier, down from a 3% year-over-year gain in September. The November report was delayed eight days by the 43-day federal government shutdown, which also prevented compilation of October CPI and core inflation numbers and may have distorted the data. Energy prices rose 4.2% in November, driven by sharply higher fuel oil prices. Excluding food and energy, core inflation rose 2.6%, the lowest year-over-year rate since March 2021. Tariffs and import taxes continue to exert upward pressure on prices.
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