US Inflation Data for November 2025 Shows Mixed Trends Amid Economic Challenges
The Consumer Price Index (CPI) rose 2.7% year over year to November 2025, a decrease from 3% in September and below economists’ forecast of approximately 3.1%. Data for October inflation were not published due to the longest US federal government shutdown, with data collection only occurring in the second half of November.
Unemployment increased to 4.6% in November, reaching a four-year high. Payrolls increased by 64,000 after a decline of 105,000 in October. Despite some claims by former President Trump that inflation was falling rapidly, the data indicate inflation remained elevated and still rose at times.
Tariffs imposed during the Trump administration have contributed to higher prices. Although some exemptions exist for imports, the overall tariff rate remains the highest since 1938. According to the Yale Budget Lab, these tariffs are expected to raise costs by about $1,700 per household.
Federal Reserve interest rates stand at 3.5% to 3.75%. Chair Jerome Powell has reiterated the Fed’s commitment to a 2% inflation target and suggested a possible pause in further rate cuts as the Fed carefully evaluates the November data amid the shutdown.
Inflation peaked at 9.1% in June 2022, fell to 2.3% by April 2024, but has since climbed again, raising concerns regarding affordability. Public opinion polls indicate continued inflation concerns, with Trump’s net approval on prices falling and surveys in Michigan showing increased inflation expectations among consumers.
