Inflation ran hotter than expected in October

WASHINGTON — U.S. inflation was higher than expected last month in a sign that the rising prices that powered sweeping Democratic victories in last week’s midterm elections will continue to pose challenges for the White House and the Federal Reserve. The consumer price index rose 0.4% from September to October, the Labor Department said Nov. 10, down from 0.6% the previous month. The government did not report a yearly inflation rate because last year's government shutdown meant no data was released for October 2025. Excluding the volatile food and energy categories, core prices rose 0.3%, the same as the preceding month. Both figures were a tenth of a point higher than forecast. U.S. markets dipped immediately after the inflation report and Treasury yields ticked higher. JUST IN: Inflation in October came in hotter than expected. A 0.4% increase (vs 0.3% expected). This implies about a ~4% inflation rate for the past year. There was a big jump in grocery prices. Eating out, electricity, transportation (esp. airfares), rent and medical services (esp. hospitals) all seeing sizable monthly price increases. Core CPI (which excludes food and energy) rose 0.3%. That was also hotter than expected. NOTE: The gov't didn't publish the y/y rate for October because they weren't able to collect data in Oct. '25 due to the gov't shutdown. — Heather Long (@byHeatherLong) November 10, 2026 The data shows that inflation remains noticeably above the Federal Reserve's target of 2%, and Americans’ struggles with high prices were evident as they ousted Republican majorities from the House and Senate last week. Yet…

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