New CPI data shows price pressures are easing faster than economists predicted.
Here’s what you missed 👇
Read this if you’re tracking your grocery bill, the stock market, or the Federal Reserve’s next move.
📍 What Just Happened
The Consumer Price Index (CPI) rose at an annual rate of 2.7% in November, cooler than the 3% forecast by Wall Street. This is a significant drop from the 3% rate seen in September.
Food prices specifically have slowed to a 2.6% annual increase, though coffee and ground beef remain notably expensive.
📊 By The Numbers
Core Inflation: Excluding volatile food and energy, core CPI rose 2.6%, beating the 3% projection.
The Shutdown Gap: Due to the recent government shutdown, October data was never collected, making this November report the first official "look" at the economy in months.
Market Response: The major stock indices traded higher following the news, as the cooling data opens the door for a potential interest rate cut in January.
✍️ Tariff Impact
Despite fears that new tariffs would spike prices, many companies have either absorbed the costs or stockpiled goods.
Economists note that Trump’s decision to cut tariffs on items like bananas and coffee in November helped blunt the impact on average consumers.
🧠 Why It Matters
This report validates the "cooling" narrative and suggests that the economy may be avoiding a "persistent affordability crisis."
If inflation continues to trend toward the 2% target, the Federal Reserve will have the green light to lower borrowing costs, providing further relief for mortgages and car loans.
🧾 The Bottom Line
Inflation is cooling faster than expected, giving the administration a major data point to support its claims of economic recovery. While groceries remain high, the broader trend suggests that the aggressive price pressures of the last few years are finally beginning to break.