The U.S. Bureau of Labor Statistics (BLS) has released the US CPI data for November. The all items index rose 2.7 percent for the 12 months ending November, after rising 3.0 percent over the 12 months ending September.
The all items less food and energy index rose 2.6 percent over the last 12 months. The energy index increased 4.2 percent for the 12 months ending in November. The food index increased 2.6 percent over the last year.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally adjusted basis over the2 months from September 2025 to November 2025.
October CPI Data
BLS did not collect survey data for October 2025 due to a lapse in appropriations. BLS was unable to retroactively collect these data. For a few indexes, BLS uses non-survey data sources instead of survey data to make the index calculations. BLS was able to retroactively acquire most of the non-survey data for October. CPI data collection resumed on November 14, 2025.
In November 2025, the annual inflation rate in the United States was 2.7%, the lowest since July and lower than the forecasts of 3.1% and 3% recorded in September. The energy index grew 4.2%, while food costs climbed 2.6%.
US Fed Action
With inflation showing signs of cooling down, it will become easier for the Fed to cut rates amidst a dwindling job market.
US Fed dot plot released recently, already points to one rate cut each in 2026 and 2027. With November inflation trending lower, an aggressive rate cut scenario may still emerge in 2026.
Fed chair Powell has reiterated in several of his speeches that US Fed FOMC members decide based on the incoming data. Interestingly, Powell retires as Chair in May 2026 but will remain on the board of governors. Trump is likely to announce the next US Fed chair anytime soon.