Inflation spiked 2.7 percent in the past 12 months, according to the latest Consumer Price Index report.
The number comes despite President Donald Trump’s persistent claims that prices are declining. The president has consistently said that prices are declining despite the fact that his reciprocal tariffs have caused prices to increase for products made outside the United States.
The report is the first Consumer Price Index report since the end of the government shutdown. The Bureau of Labor Statistics did not collect data in October because of the shutdown.
While inflation was still up, it was less than the 3 percent that analysts expected. The figures have also been cooling, overall, for the last few years from the pandemic highs.
The index for food rose by 0.1 percent over the past two months ending in November and by 2.7 percent in the past year. But the increase was more pronounced for products such as bananas, which rose 6.7 percent in the past year; beef and veal, which rose by 15.8 percent; and coffee, which rose 18.8 percent in the last year.
Trump has tried to stave off some of the pinch from the tariffs. Last month, he rolled back tariffs on products including coffee, citrus fruits and other food last month, though continued to defend tariffs.
During his White House address, the president doubled down on his use of tariffs.
“Much of this success has been accomplished by tariffs, my favorite word, tariffs, which for many decades have been used successfully by other countries against us, but not anymore,” he said.
The index for energy also rose 1.1 percent in the past month and increased 4.2 percent in the past 12 months. This comes despite the fact the president has persistently pushed for more oil exploration.
The index for all products except for food and energy rose 0.2 percent in the past two months. The index for shelter rose 0.2 percent.
The index for rent rose 3 percent in the last 12 months and the owner’s equivalent of rent rose 3.4 percent in the past year.
This comes as other economic indicators show signs of an economy slowing down. The Bureau of Labor Statistics released its jobs report for November showing the economy added only 64,000 jobs in November and the unemployment rate ticking up.
In his address to the nation on Wednesday evening, the president insisted that prices were falling despite evidence to the contrary.
“Wages are up, prices are down. Our nation is strong. America is respected, and our country is back stronger than ever before. We are poised for an economic boom the likes of which the world has never seen,” Trump said in a Wednesday evening address.
This comes as polling shows Americans do not trust the president on inflation.
The latest NPR/PBS News/Marist poll published this week showed that 57 percent of respondents disapproved of the president’s handling of the economy and only 36 percent of Americans approve of his handling. And only about 30 percent of Americans said the cost of living in their area is affordable.
Thursday’s inflation data comes as Americans face another potential price increase. At the end of the month, at least 22 million Americans who receive their health insurance through the Affordable Care Act’s health insurance exchange will see their premiums increase when enhanced tax credits expire.
The House of Representatives is set to leave town Thursday without holding a vote to extend the credits.
-Andrew Feinberg and Brendan Rascius contributed reporting
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