In November, inflation in the U.S. showed signs of stubbornness, but consumer spending remained strong. According to the Commerce Department, consumer prices rose by 2.8% from the previous year, up slightly from October’s 2.7%. Even when excluding food and energy, core prices also rose by 2.8%, keeping pace with October’s figures.
Consumer spending increased by 0.5% in November, indicating a healthy economy as we headed into the end of the year. This suggests that many Americans are still willing to spend, which is essential for economic growth.
However, while inflation is down from its peak of 9.1% in June 2022, it’s still a concern. Job growth has slowed, leaving many job-seekers feeling frustrated, even though the unemployment rate remains low. Economists like James McCann from Edward Jones comment that these trends suggest the Federal Reserve might hold off on cutting interest rates during their next meeting. He stated that there’s “little urgency to cut rates” if the economy continues to perform well into 2026.
In the short term, both overall inflation and core inflation nudged up by just 0.2% in November, a positive sign that could help bring inflation closer to the Fed’s 2% target over time. Notably, data was delayed due to a government shutdown last fall, highlighting how events can impact economic reporting.
Interestingly, a recent report showed that the economy expanded at a remarkable 4.4% annual rate in the July to September quarter, marking the fastest growth in two years. This sets a hopeful tone as we look toward the final quarter of 2025.
The public reaction to these economic updates has been mixed. Many people are optimistic about steady job opportunities, while others express worries about rising prices. On social media, hashtags like #InflationConcerns and #EconomyWatch are trending as users discuss how these changes affect their daily lives.
For more detailed insights into consumer spending trends, you can visit [the Bureau of Economic Analysis](https://www.bea.gov/news/2026/personal-income-and-outlays-october-and-november-2025).
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The Federal Reserve, core inflation, Consumer spending, inflation gauge, Commerce Department, James McCann
