But economists quickly warned that last month’s numbers were suspect because they’d been delayed and likely distorted by the 43-day federal shutdown. And most Americans have not felt any let up in the high prices they are paying for food, insurance, utilities, and other basic necessities.
The Labor Department reported Thursday that its consumer price index rose 2.7% in November from a year earlier. Yet, year-over-year inflation remains well above the Federal Reserve’s 2% target. Americans, dismayed by high prices, handed big victories to Democrats in local and state elections last month.
The inflation report was delayed eight days by the shutdown, which also prevented the Labor Department from compiling overall numbers for consumer prices and core inflation in October and disrupted the usual data-collecting process. Thursday’s report gave investors, businesses, and policymakers their first look at CPI since the September numbers were released on Oct. 24.
Consumer prices had risen 3% in September from a year earlier, and forecasters had expected the November CPI to match that year-over-year increase.
“It’s likely a bit distorted,’’ said Diane Swonk, chief economist at the tax and consulting firm KPMG. “The good news is that it’s cooling. We’ll take a win when we can get it.’’
Still, Swonk added: “The data is truncated, and we just don’t know how much of it to trust.’’ By disrupting the economy – especially government contracting – the shutdown may have contributed to a cooling in prices, she said.
