Inflation Rises To 3.1% In November, Highest Since May 2024

Inflation picked up again in November, marking a third consecutive increase and reviving investor concerns that the central bank may be forced into an extended pause in its easing cycle.

The Consumer Price Index rose 3.1% year-over-year in November 2025, hitting the highest inflation rate since May 2024, the Bureau of Labor Statistics reported Thursday.

That was up from 3.0% in September and in line with economists’ expectations.

Gasoline prices were 1% higher than a year earlier, while the broader energy index climbed 2.5%. Food prices increased 3% over the same period.

Excluding food and energy, core CPI rose 3.0% year over year, matching both forecasts and September's reading, a sign that underlying inflation pressures remain stubborn.

Services inflation remained a key driver, with prices excluding energy services rising 3.7% year over year, up from 3.5%. Shelter costs, which account for nearly one-third of the CPI basket, were up 3.6%.

The report excluded monthly CPI changes after the Bureau of Labor Statistics said the October release was scrapped because of the government shutdown.

The fresh rise in inflation underscores how challenging it has become for the Federal Reserve to steer price pressures back toward its 2% target.

Ahead of the release, bond markets were pricing in only a 26% probability of a 25-basis-point rate cut at the Federal Reserve's Jan. 28 policy meeting.

This is a developing story…

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