Inflation runs hotter than expected as higher prices extend beyond the gas station
Summary
U.S. consumer prices rose 0.4% from September to October, while core prices rose 0.3%; both increases were 0.1 percentage point above forecasts. The report did not include an annual inflation rate because data for October 2025 were not released during last year’s government shutdown. The figures raised expectations that the Federal Reserve may increase interest rates in December.Key Facts
- The Labor Department reported that overall consumer prices rose 0.4% in October, down from 0.6% in September.
- Prices excluding food and energy rose 0.3%, matching September’s increase.
- The article says both monthly inflation figures were 0.1 percentage point higher than forecast.
- Gas prices rose 1% in October and were more than 37% higher than a year earlier.
- Electricity prices rose 0.9%, while grocery prices increased 0.4%.
- Air fares, public transportation and delivery services also became more expensive, according to the report.
- Fed governor Christopher Waller said a half-percentage-point rate increase in December was possible.
- Stock prices fell and Treasury yields rose in early trading as investors anticipated persistent inflation and higher interest rates.
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