Inflation and Affordability Challenges Pose Political Hurdles Amid Rising Prices

U.S. consumer prices rose slower than anticipated by November, but affordability issues persist, affecting basic goods like beef and electricity. Economists warn against over-reliance on the incomplete CPI report affected by a government shutdown. Inflation remains a political issue, with rising tariffs impacting some prices. Labor market conditions remain steady.

Consumer prices in the United States have risen more slowly than expected, but affordability remains a significant concern as basic goods like beef and electricity experience price surges. This creates political challenges for President Donald Trump, with inflation poised as a key issue for Republicans vying for Congress control in 2026.

The Bureau of Labor Statistics published an incomplete Consumer Price Index (CPI) report, affected by a federal government shutdown that hindered data collection. Economists advise caution due to the report's gaps, but the White House celebrated the figures as a triumph amidst ongoing affordability discussions.

Despite retailers presenting holiday discounts, prices, especially those influenced by import tariffs, continue to climb. Economists anticipate clearer data in December, while the labor market remains stable with unemployment claims fluctuating slightly around seasonal variances.

(With inputs from agencies.)