Inflation Slowed Before Rising In November, Delayed Data Shows

Core Insights - Inflation improved in October 2025, with annual inflation at 2.7%, before rising to 2.8% in November, aligning with Wall Street's expectations [1][2] - The Federal Reserve's preferred inflation measure, the core PCE price index, showed a similar trend, with core PCE at 2.8% for September and matching estimates for October and November [2] Economic Indicators - The Federal Reserve is expected to conclude its policymaking meeting on January 28, with only a 5% chance of interest rate cuts in the upcoming vote, following a reduction to between 3.5% and 3.75% in December [3] - Fed Chair Jerome Powell indicated a likely pause on further cuts, emphasizing a "wait and see" approach regarding economic developments [3] Contextual Background - President Donald Trump claimed significant cooling of inflation, stating there was "virtually no inflation" and that he had "defeated" inflation over the past year [4] - The Federal Reserve aims for a 2% annual inflation rate, which has been exceeded for 57 consecutive months, raising concerns about the labor market and the impact of high inflation on lower- and middle-income Americans [4]