U.S. consumer prices rose 0.4% in October from September, the Bureau of Labor Statistics said in Washington on Tuesday, November 10. The increase was slower than September's 0.6% rise but exceeded economists' expectations by 0.1 percentage point, according to the Associated Press. Prices excluding food and energy also rose 0.3%, matching the previous two months and likewise topping forecasts.
The figures matter because the Federal Reserve is weighing whether borrowing costs need to rise further to contain inflation. Its target is 2% inflation over time. The October report describes a monthly change, however, and the bureau did not publish its usual annual inflation rate: a government funding lapse prevented collection of the October 2025 data needed for most year-on-year comparisons.
Food prices rose 0.5% during October, including a 0.4% increase for groceries and a 0.5% increase for meals away from home, the bureau reported. Shelter costs rose 0.3% and accounted for more than 30% of the overall monthly increase. Those categories show that the latest rise extended beyond energy bills and fuel.
The energy index increased 0.7% after a 5.2% jump in September. The bureau also recorded higher prices for medical care, recreation, motor vehicle insurance and education, while used cars and trucks fell 1.2%. These mixed movements left the measure excluding food and energy up 0.3% for a third consecutive month.
The Associated Press reported that U.S. stocks fell and Treasury yields rose after the release as traders considered the prospect of higher interest rates. Federal Reserve Governor Christopher Waller said Tuesday that a half-point rate increase in December was possible, according to AP. That was a possibility he raised, not an announced decision by the central bank.
The report gives households, businesses and policymakers a fresh measure of price pressure, but the missing October 2025 comparison limits any direct annual reading. The next consumer price report, covering November, is scheduled for December 10, according to the Bureau of Labor Statistics. The Federal Reserve's next decision will depend on its assessment of inflation and the broader economy.
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