U.S. Annual Consumer Price Growth Unexpectedly Slows In November

(RTTNews) - The annual rate of growth by consumer prices has unexpectedly slowed, according to data released by the Labor Department on Thursday.

The Labor Department said consumer prices in November were up by 2.7 percent compared to the same month a year ago.

The year-over-year price growth in November reflects a notable slowdown from the 3.0 percent surge in September. Economists had expected the annual rate of growth to tick up to 3.1 percent.

The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 2.6 percent in November from 3.0 percent in September. The pace of core price growth was expected to remain unchanged.

"It always sounds smarter to predict trouble ahead, but this morning's inflation data was much better than expected," said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

He added, "Of course, it's only one month's data points and they will likely fluctuate in the upcoming months, but the main concern of Fed officials who are reluctant to keep cutting is that inflation is persistently high and won't come down if they keep lowering interest rates, and at this point that doesn't look like it's the case."

The Labor Department noted that survey data for October 2025 was not collected due to the government shutdown.

The report also said the Labor Department's consumer price index rose by 0.2 percent over the two months from September to November.

Excluding food and energy prices, the core consumer price index also edged up by 0.2 percent over the same two-month period.

Energy prices jumped by 1.1 percent over the two months from September to November, while prices for shelter increased by 0.2 percent and prices for food crept up by 0.1 percent, the Labor Department said.

The report said prices for household furnishings and operations, communication, and personal care also rose over the same two-month period, while prices for lodging away from home, recreation, and apparel decreased.