Inflation Remains Grave Concern As It Worsens in November

Inflation in the U.S. continued to rise in November, bringing new challenges for consumers and policymakers. The Labor Department reported that the consumer price index (CPI) increased by 0.3% for the month and 2.7% annually. Core prices also rose, indicating persistent inflationary pressures despite efforts to stabilize prices.

As inflation remains a top concern, recent polling found that 39% of voters consider the economy the most pressing issue. A significant majority, 60%, want President-elect Donald Trump to focus on lowering food and gas prices.

The polling also revealed that most voters are feeling “hopeful” following Trump’s victory. Democratic pollster Chris Anderson said, “The fact that hopeful is the top emotion about the election outcome mostly reflects the deep partisan divide in the country, but notably, one in five Democrats is hopeful.”

Anderson added, “While it’s a stretch to say that means Trump can bridge the partisan divide, it may reflect that at least some Democrats think he can make progress in certain areas — most likely inflation and border security, the top voting issues this year.”

Republican pollster Daron Shaw stated, “These data provide a blueprint for how Trump can win the first 100 days. Get prices under control, ease the tax burden on individual Americans, and strengthen national defense. That’s the list.”

Shaw said, “These numbers present opportunities for Trump. Voters do not necessarily have high expectations for the president-elect on key aspects of the economy. If he reassures them on his commitment to democratic and free speech norms and advances policies that bring down prices and lower individual tax burdens, he could significantly improve his standing.”

Looking ahead, the Federal Reserve is expected to announce a 25 basis point cut to interest rates at its upcoming meeting. Market indicators suggest a strong likelihood of the decision, with a 97.9% probability reported by the CME FedWatch tool.

Food prices have also contributed to inflation, rising 0.4% monthly and 2.4% year-over-year, with notable increases in the costs of meats and eggs. Chief economic strategist for Morgan Stanley Wealth Management Ellen Zentner said, “CPI was a bit higher than anticipated but the underlying details were more favorable.”

Zentner added, “Higher prices for new and used vehicles point to lingering hurricane effects on demand and supply, while housing costs showed the smallest increase since 2021. The data have given the Fed the ‘all clear’ for next week, and today’s inflation data keep a January cut in active discussion.”