November US Consumer Prices Annual Rates Below Expectations

BY MT Newswires | ECONOMIC | 08:46 AM EST

08:46 AM EST, 12/18/2025 (MT Newswires) -- The US seasonally adjusted consumer price index, a measure of inflation, rose by 2.7% in November from a year earlier, below expectations for a 3.1% increase in a survey conducted by Bloomberg.

Core CPI, which excludes food and energy prices, rose by 2.6% year-over-year, also lower than the consensus estimate for a 3.0% increase.

The Bureau of Labor Statistics was unable to calculate October data for several key series, so a month-over-month percent change calculation for November was not possible in those cases.

One monthly metric that the BLS was able to calculate was for gasoline prices, which rose by 3% in November after a 2.1% decline in October.

Two others were new and used vehicles, which rose by 0.2% and 0.3%, respectively, in November after gains of 0.1% and 0.7% in in October.

The monthly consumer price index, or CPI, reported by the Bureau of Labor Statistics, measures the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing.

The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Federal Reserve as a sign of underlying inflation pressures.

Rising inflation is a sign of strong US consumer demand, but both stocks and bonds normally react negatively to levels of price growth that would necessitate higher interest rates.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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