U.S. Inflation Data Shows Cooling, But Reliability Questioned
Associated Press
The Labor Department reported November’s consumer price index rose 2.7% year-over-year, down from September’s 3%. However, economists questioned the reliability of this data due to a 43-day federal shutdown that delayed the report and disrupted data collection.
“The good news is that it’s cooling. We’ll take a win when we can get it,” said Diane Swonk from KPMG, but added “we just don’t know how much of it to trust.” Kay Haigh at Goldman Sachs described the numbers as “noisy” with potential systematic biases.
Despite modest inflation improvements, Americans report heightened concerns about costs. An AP-NORC poll found the vast majority noticed higher prices for groceries, electricity, and holiday gifts, with roughly half struggling to afford gifts and delaying major purchases.
Import tariffs continue pressuring prices upward. Companies like Wolverine Worldwide face significant tariff costs, forcing price increases of 5-8% on products and freezing hiring and investments.
Economists expect more reliable inflation data when December figures release in mid-January.