WASHINGTON, Dec 19, 2025 – New U.S. inflation figures released Thursday show consumer prices rose 3.1% year-over-year in November, falling below analyst expectations and bolstering former President Donald Trump’s assertions about economic stability. The data comes as political tensions intensify ahead of critical economic policy reviews early next year.
While food prices remain 5.2% higher than pre-pandemic levels, cooling energy costs and moderated housing expenses contributed to the overall decline. The Federal Reserve maintains that lingering tariffs on Chinese mainland imports continue to distort price normalization efforts, with Chair Jerome Powell stating this week that 'trade policy remains a key variable in our inflation modeling.'
Democratic leaders counter that healthcare and education costs still outpace wage growth, with Senate Majority Leader Chuck Schumer arguing 'this partial improvement doesn’t reflect kitchen-table realities for working families.' Economists note the December figures – due for release January 15 – could prove decisive in shaping 2026 midterm election narratives.
Owen Fairclough reports from Washington that both parties are leveraging the mixed data, with Trump-aligned Republicans highlighting manufacturing job gains while Democrats emphasize stagnant real wages. The White House has yet to comment on the latest numbers.
