business
uplifting

Harvard economist praises surprising drop in inflation rate

Dec 18, 2025, 4:02 PM10
(Update: Dec 18, 2025, 4:02 PM)
private university in Cambridge, Massachusetts

Harvard economist praises surprising drop in inflation rate

  • The U.S. Labor Department reported an inflation decrease to 2.7% in November 2025.
  • Harvard economist Ken Rogoff commented that the drop was larger than expected and considered it good news.
  • The reduction in inflation, however, contrasts with the rising unemployment rate, indicating economic strain.
Share opinion
Tip: Add insight, not just a reaction
1

Story

On November 2025, the U.S. Labor Department reported a significant decrease in inflation, dropping to 2.7% from 3% in September 2025. This unexpected decline was noted by Harvard economist Ken Rogoff, who expressed that the numbers were particularly better than what many economists had predicted. He remarked on CNN that people expected inflation to remain above 3%, and the lower result would likely be interpreted positively by the President and investors, anticipating possible cuts in interest rates. The report comes amid ongoing scrutiny of the White House's handling of the economic recovery and unemployment, which rose to 4.6%, the highest since 2021. This economic backdrop set the stage for a primetime address by former President Donald Trump, who blamed the Biden administration for previous challenges while highlighting his own administration’s efforts in reviving the economy. He claimed that his policies were successfully decreasing prices. Yet, while inflation eased, the rise in unemployment indicated signs of economic strain, creating a complex picture of recovery in the U.S. economy during this period.

2026 All rights reserved