CPI Report Shows Mixed Signals For Our Economy

Prices are up, the unemployment rate is up, but inflation is down. That’s the takeaway from the first Consumer Price Index report of 2026.

The October CPI report wasn’t released due to the government shutdown, so this report was more closely watched as experts try to get a handle on what’s really happening on Main Street. It came in roughly as expected; the year-over-year inflation rate was 2.7%, down from 2.9% a year ago.

The Core CPI number is much more stable, as it doesn’t count increases in food and energy costs. The Core CPI came in at 2.6%, just below the industry prediction.

What does that mean for you and me?

A new refrigerator that cost $1000 last year will now cost you about $1027.00. Not a huge deal in the grand scheme of things, but it all adds up. It’s a strong indication that inflation is slowing down, but we still have a little farther to go to hit the Fed’s goal of 2.0%.

On to the Jobs Report!

If you find your salary isn’t keeping up with inflation, last Friday’s U.S. Jobs Report isn’t as rosy. The United States did add 584,000 jobs in 2025; that number isn’t as robust as it has been in previous years.

What does that mean for you and me?

While some will say it’s a big drop from previous years, it really depends on what sector of the economy you’re looking at. Health care and social services can’t hire fast enough to keep up with demand, and added over 710,000 jobs in 2025. However, if manufacturing, professional and business services, and government are your jam, you’ll have to look harder for fewer open jobs. Those three sectors lost 314,000 jobs in 2025. So, while the United States is adding fewer jobs than in previous years, it really matters where you look.

There are positive and negative takeaways in the report; the biggest is that it’s an official number published with a full explanation of the methodology used to generate the number. It’s not one “industry expert” pontificating what they think the current state of business is.

The Fed will meet later this month and make a decision on interest rates. They’ll use this report as a foundation for their decision. The industry expects the decision to keep interest rates steady, after three straight cuts in the prime rate.