Inflation Rises Again in November

Month-over-month and year-over-year inflation ticked up in November, indicating that cost-of-living pressures are still stubborn for employees.

The Consumer Price Index (CPI) for all items rose 2.7% for the 12 months ending in November, before seasonal adjustment, the U.S. Bureau of Labor Statistics (BLS) reported Dec 11. That’s up from the 2.6% year-over-year increase notched in October and up from the 2.4% rise notched in September.

On a monthly basis, the CPI increased 0.3%, after rising 0.2% the previous four months.

The index for shelter rose 0.3% in November, accounting for nearly 40% of the monthly all items increase, the BLS reported. The food index also increased over the month, rising 0.4%, as the food at home index rose 0.5%, and the food away from home index rose 0.3%. The energy index rose 0.2% over the month, after being unchanged in October.

Core CPI accelerated 0.3% for the month—the same as the previous three months—and 3.3% annually.

The fact that inflation has warmed again after falling from record highs is happening as consumers are dealing with financial pressures and high costs while pay raises are slowing.

Bank of America data recently found that nearly half of Americans say they are living paycheck to paycheck.

Justin Ladner, senior labor economist at SHRM, said the general consensus is that inflation has been prevented from falling further due to “persistent inflationary pressures in specific sectors, with the services and especially housing sectors being very commonly cited culprits.” It is still expected that the Federal Reserve will continue with a modest interest rate cut in December, he said.

“There are several potential developments in 2025 that create uncertainty with respect to inflation,” Ladner said. “For example, widespread tariffs and a significant tax cut could put upward pressure on a wide range of prices.”

Real Earnings

Real average hourly earnings for all employees were unchanged from October to November, seasonally  adjusted, the BLS reported separately Wednesday. Real average weekly earnings increased 0.3% over the month due to no change in real average hourly earnings combined with a 0.3% increase in the average workweek.

Real average hourly earnings increased 1.3%, seasonally adjusted, from November 2023 to November 2024, the BLS said. The change in real average hourly earnings combined with a 0.3% decrease in the average workweek resulted in a 1% increase in real average weekly earnings over this period.