U.S. Inflation and Cost of Living

The delayed November CPI showed inflation running 2.7% year‑over‑year (core 2.6%), a cooler‑than‑expected reading whose release was truncated and distorted by a 43‑day government shutdown that also wiped out October data, prompting economists to call the figures “noisy” and say a reliable read likely won’t come until December. Even with lower headline inflation and mixed price moves (groceries +1.9% y/y, energy +4.2%), Americans report feeling the squeeze—71% say income only meets or falls short of expenses amid slowing wage growth and a 4.6% unemployment rate—while the Commerce secretary hailed the drop as evidence of administration policies and the Fed continues to balance recent rate cuts against inflation risks.