Inflation slows to 2.7% — lower than expected, down from its ‘Biden-era peak’

(Background) A price tag is seen on jean shorts in a clothing store in Washington, DC, on June 14, 2022. (Photo by Stefani Reynolds / AFP) (Photo by STEFANI REYNOLDS/AFP via Getty Images) / (R) White House Press Secretary Karoline Leavitt speaks during the press briefing in the Brady Briefing Room of the White House in Washington, DC, on December 11, 2025. (Photo by Jim WATSON / AFP via Getty Images)
(Background) A price tag is seen on jean shorts in a clothing store in Washington, D.C., on June 14, 2022. (Photo by STEFANI REYNOLDS/AFP via Getty Images) / (R) White House Press Secretary Karoline Leavitt speaks during the press briefing in the Brady Briefing Room of the White House in Washington, D.C., on December 11, 2025. (Photo by Jim WATSON / AFP via Getty Images)

OAN Staff Katherine Mosack
10:55 AM – Thursday, December 18, 2025

Inflation in the United States decelerated last month, according to a Labor Department report that was delayed due to the 43-day government shutdown this fall.

The Department of Labor (DOL) reported on Thursday that the consumer price index (CPI) lifted in November by 2.7% from last year. This rate was lower than Wall Street’s projected 3.1% increase.

The new report is the first look at CPI since the September report was released on October 24th, noting that prices had risen 3% from a year earlier and projecting the November CPI to match that increase.

Meanwhile, core inflation, which excludes volatile food and energy categories, is reportedly at 2.6%, coming in lower than the projected 3%.

 

Inflation has remained above the Federal Reserve’s 2% target thus far.

The lower than expected inflation numbers have increased scrutiny on the Federal Reserve, with rumors swirling that it may lower interest rates sooner rather than later in the new year. According to The New York Times, investors are now betting that April will bring on a quarter-point cut.

The Fed has already made three quarter-point cuts in a row to interest rates. In September, rates dropped to 4% to 4.25%, then to 3.75% to 4% in October, and finally, to 3.5% to 3.75% in December.

 

On Thursday, White House Press Secretary Karoline Leavitt praised the slowing inflation, referencing an address President Donald Trump gave on Wednesday night.

“Just as President Trump told Americans last night: inflation continues to fall, wages continue to rise, and America is trending towards a historic economic boom. Today’s report shows that inflation came in far lower than market expectations — a stark comparison to the record-high 9% inflation crisis caused by Joe Biden,” she stated.

 

“Core inflation is at a new multi-year low, as prices for groceries, medicine, gas, airfare, car rentals, and hotels keep falling. Americans can expect this trend of lower prices and bigger paychecks to continue into the New Year!” she proclaimed.

“The era of inflation is over,” the White House’s statement read, saying that the latest data shows “inflation down about 70% from its Biden-era peak.”

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