Numbers don’t lie, U.S. consumer inflation rose by less than expected in November; CPI gained 2.7%

U.S. inflation rose by less than expected in November, but remained above the Federal Reserve’s target, as the first batch of prices data was published since the government shutdown ended in mid-November.

According to data from the Bureau of Labor Statistics (BLS) on Thursday, the U.S. consumer price index in November rose 2.7% on an annualized basis, a drop from the 3.0% figure announced in September and below the expected 3.1% growth.

The so-called core reading, which strips out volatile items like food and energy, rose 2.6% year-on-year, below the 3.0% growth forecast.

The BLS had previously said it would not publish the headline CPI number or the core CPI for October after it was unable to collect some data during that month due to the prolonged government shutdown.

While the November report will be published, it will “not include 1-month percent changes for November 2025 where the October 2025 data are missing,” the BLS said.

The incomplete nature of the inflation report could result in increased volatility, according to Goldman Sachs, with the U.S. bank stating in a note that “collecting prices only in the second half of the month could bias prices lower because goods prices typically decline sharply starting around the middle of November as the holiday sales season kicks off.”

The numbers were still above the Fed’s desired rate of around 2% to achieve stable and sustainable growth, with inflation so far proving difficult to tame but a weakening jobs market suggesting further interest rate cuts.