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June 4, 2026
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U.S. Inflation Cools Unexpectedly in November Amid Government Shutdown Impact

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The U.S. inflation rate eased more than anticipated in November, according to a delayed government report affected by the recent federal shutdown. The Labor Department announced that the consumer price index (CPI) rose by 2.7% compared to the same month last year. Although this marks a slowdown from September’s 3% increase, inflation remains above the Federal Reserve’s 2% target, with Americans continuing to face high living costs.

This report, coming eight days late due to the 43-day government shutdown, was the first CPI update since September. The shutdown also hindered the ability to collect October inflation data, making month-to-month comparisons challenging.

Energy prices climbed 4.2% in November, largely driven by rising fuel oil costs. Core inflation, which excludes food and energy, grew 2.6% year-over-year—the slowest pace since March 2021.

Despite recent improvements, inflation persists at elevated levels partly due to tariffs implemented under President Donald Trump. His import taxes on a wide range of goods, including steel, aluminum, and automobiles, have contributed upward pressure on prices. While these measures have not sparked as much inflation as initially feared, they add complexity to the Federal Reserve’s monetary policy decisions.

The Federal Reserve recently lowered interest rates for the third time in the year to support a weakening job market, but officials have indicated only one rate cut is expected in 2026.

Financial experts caution that this month’s inflation figures are somewhat uncertain due to the shutdown’s disruption of data collection. The Federal Reserve is expected to rely more on the December inflation data, set to be released in mid-January, to guide future policy.

Meanwhile, President Trump addressed the economic situation in a prime-time speech, blaming Democratic policies for economic challenges. His remarks echoed previous promises of economic growth, despite ongoing concerns about elevated inflation and a weakening labor market following the introduction of tariffs.

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