Analysts also warn that disruptions to data collection, due to a record-long government shutdown, likely distorted the numbers.
The consumer price index (CPI) climbed 2.7 per cent from a year ago in November, the Department of Labour said, notably below analysts’ predictions of a 3.1 per cent uptick.
The latest figure was also down from a 3.0 per cent rise in September, the most recent month for which fuller data was available due to a lengthy government shutdown.
White House National Economic Council director Kevin Hassett was quick to laud the figures, calling this “an astonishingly good CPI report.”
But inflation has ticked up this year as Trump slapped new tariffs on goods from US trading partners, causing many firms to flag a hike in business costs.
The impact on consumers has been more muted, as companies rushed to stock up on inventory before steeper import prices kicked in. Many opted not to fully pass on the cost increases.
US households, however, still feel the pinch from elevated costs overall.
Democrats notched victories in off-year elections last month, fuelled by voters being disgruntled about rising prices – underscoring affordability concerns.
Food prices were 2.6 per cent higher from a year ago in November, with the index for meats, poultry, fish and eggs up 4.7 per cent over this period.
Energy costs also jumped 4.2 per cent over the past 12 months.
Excluding the volatile food and energy sectors, “core” CPI was up 2.6 per cent in November from a year ago – still above the Federal Reserve’s longer-run target of two per cent.
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