First inflation report since government shutdown shows an ease to 2.7%

Inflation Overview - November year-over-year inflation rose by 27%, lower than economists' expectation of 31% [1][5] - The Bureau of Labor Statistics did not collect October data due to government shutdown [2][6][14][15][16] - The Federal Reserve ideally prefers inflation to be closer to 2% [7] Consumer Spending & Prices - Food prices increased by 26% year-over-year, lower than the previous reading of 31% [9] - Energy costs increased by 42% year-over-year, with electricity costs up by approximately 7% [10] - Shelter costs increased by 3% year-over-year, slower than the previous reading of 32% or 36% [11] - Apparel costs were essentially flat, up by two-tenths of a percent year-over-year [12] Federal Reserve & Interest Rates - There is approximately a 25% chance the Federal Reserve will cut interest rates at the January 28th meeting [12] - The Federal Reserve may cut rates once or twice in 2026, depending on the labor market [12][13] - Weaker jobs data could lead the Federal Reserve to cut rates more than once in 2026, potentially triggering some inflation [13]