Today’s Consumer Price Index (CPI) report for November shows inflation at 2.7% year over year, with core inflation running at 2.6%. While this month’s report is incomplete due to interruptions in data collection following the government shutdown, it shows that prices for basic goods and services remain elevated for working families, with few signs of relief at the grocery store or in the toy aisle this holiday season.
Groundwork Collaborative’s Chief of Policy and Advocacy Alex Jacquez released the following statement:
“Despite his promises to lower prices on day one, Trump has spent this year driving up costs and sticking consumers with the bill. Working families across the country are being forced to choose between decking the halls and paying the bills as prices on essentials continue to soar. Consumers have lost faith in the President to deliver relief from rising costs, and the latest data further shows that unless Trump changes course on his disastrous economic agenda, high prices are here to stay across too many essential goods and services.”
Inflation remains elevated. Headline and core CPI are running around 2.7% and 2.6% year-over-year, respectively, well above the Fed’s 2% target. Month-over-month data is not available due to the impacts of the government shutdown, and economists widely expect this month’s numbers to be biased downward.
Price increases appear across consumer essentials. Prices are increasing across key items, including beef, fish, bananas, canned fruits and vegetables, and coffee. Prices for rent, and medical care are rising, keeping costs high in the areas families spend the most. Electricity prices rose 6.9% over the last 12 months as families struggle with rising utility bills.
Consumers are paying the price for Trump’s tariffs. According to the Federal Reserve’s Beige Book, tariff-related cost pressures are showing up in higher input and selling prices for firms and are weighing on consumer spending, and a Goldman Sachs analysis finds that U.S. households are absorbing more than 50% of the cost of Trump’s tariffs as businesses raise prices.
Households expect high prices to persist and remain deeply concerned about inflation as they plan for the holiday season. The New York Fed’s November survey shows inflation expectations holding near 3 percent, Conference Board data indicate that high prices continue to dominate views of the economy, and the University of Michigan survey finds that inflation uncertainty remains elevated even as expectations ease. Recent Data for Progress polling shows many families plan to cut back on gifts due to high prices.