U.S. Inflation Rises to 2.8% in November, Consumer Spending Holds Steady - CPI Data

Consumer prices rose 2.8% year-over-year in November, the Commerce Department reported on January 22, 2026, up from 2.7% in October, as core inflation also climbed to 2.8%, signaling persistent price pressures. Monthly inflation increased 0.2% for both overall and core measures, consistent with a gradual slowdown toward the Federal Reserve’s 2% target. Consumer spending advanced 0.5% in November from October, supporting evidence of robust economic growth in the final quarter of 2025. The data follows a 4.4% annual GDP expansion in the July-September quarter, the strongest in two years. Despite cooling labor market conditions, unemployment remains low, and hiring has slowed significantly. Economists say the Fed is unlikely to cut interest rates at its January 30–31 meeting, given resilient demand and inflation above target. James McCann of Edward Jones noted the economy remains solid, reducing urgency for rate cuts. The report was delayed due to a six-week government shutdown in late 2025.