business
US inflation rose 0.4% in October, exceeding economist forecasts
U.S. inflation rose 0.4% in October, exceeding forecasts and pressuring the Fed to hike rates in December.
Key points
- U.S. consumer prices rose 0.4% in October according to the Labor Department.
- Shelter costs accounted for over 30% of the monthly inflation increase.
- Analysts expect the Federal Reserve to raise rates in its December 8-9 meeting.
Why it matters. Persistent inflation pressures the Federal Reserve to decide on a potential interest rate increase in December, which could affect borrowing costs and economic activity in the United States.
The U.S. Labor Department reported on Tuesday that consumer prices climbed 0.4% in October, surpassing the 0.3% increase predicted by FactSet economists. Although this monthly rise cooled from September's 0.6%, shelter costs alone drove more than 30% of the gain, while food prices accelerated to 0.5%. Analysts suggest this persistent inflation may compel the Federal Reserve to raise interest rates by 0.25 or 0.50 percentage points during its December 8-9 meeting.
Latest updates
US inflation rose 0.4% in October, exceeding economist forecasts
The US Labor Department reported on Tuesday that the Consumer Price Index rose at a monthly pace of 0.4% in October, higher than economists had forecast. This increase indicates that inflation remains elevated, providing little relief to consumers grappling with high living costs. The report noted that the Labor Department did not release a year-over-year inflation rate for October 2026 due to the previous government shutdown in 2025. The data suggests that price pressures continue to persist despite previous economic expectations.
Sources
AI-assisted summary of the reporting above. Quotes are kept to one sentence. Copyright concern? See our DMCA takedown page.
Topics
Related stories
Trump Media cashes in on high-speed access to social media posts
Trump Media and Technology Group reported Monday that revenue surged 205% in the third quarter, which it says was “primarily driven” by
Asset Based Lending closes $200M securitization
Asset Based Lending closed a $200 million securitization backed by residential real estate loans on Oct. 26.
Seller’s choice or Compass choice? Here’s what Robert Reffkin said to his investors
Compass CEO Robert Reffkin told investors on Nov 5 that the brokerage's private listing program prioritizes agent recruitment and traffic