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US inflation cools to 0.4% in October but remains high due to food and housing costs

US inflation rose 0.4% in October as food and housing costs kept prices high despite lower gasoline prices.

Updated 1 min read

Published by Agyata NewsroomEditorial policyCorrections

Key points

  • US inflation rose 0.4% in October according to the Bureau of Labor Statistics.
  • Mark Zandi of Moody's says the data makes a December rate hike more likely.
  • Core inflation increased 0.3% in October while remaining above the 2% target.

Why it matters. The report suggests the Federal Reserve may raise interest rates again in December because prices are not on a sustainable path toward the 2% target, potentially increasing borrowing costs for consumers and businesses in the US.

Updated Sources: CNBC

US inflation slowed to 0.4% in October according to the Bureau of Labor Statistics, driven by a moderation in gasoline prices while food and housing costs maintained upward pressure. Mark Zandi of Moody's warned that this figure increases the likelihood of another Federal Reserve rate hike in December. Core inflation also rose 0.3% during the month, remaining above the central bank's 2% annual target for over five years.

Latest updates

US inflation cools to 0.4% in October but remains high due to food and housing costs

Inflation in the United States slowed in October 2026, with the consumer price index rising 0.4% from the previous month. This marks a moderation from the blistering pace seen in September, largely driven by a more moderate increase in gasoline prices. However, economists caution that the overall inflation rate remains uncomfortably high due to persistent upward pressure from food and housing categories. The data suggests that while the immediate pace of price increases has decelerated, the Federal Reserve faces a challenging path to achieving its long-term inflation target.

CNBC

Sources

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