In a welcome surprise, U.S. inflation showed an unexpected slowdown in November. Economists point to aggressive holiday discounts from retailers as a primary driver for the cooling prices.
However, market experts urge cautious optimism. The report contained unusual volatility, particularly in key categories like housing costs—a major component of inflation—which saw a rare deceleration. Analysts warn this specific easing might be statistical “noise,” potentially distorted by recent government shutdown disruptions, rather than a definitive signal of a new trend.
