Consumer prices rose 0.4% in October, more than expected
Consumer prices rose 0.4% from September to October, the Labor Department reported Tuesday, above the 0.3% economists expected. Core prices, which leave out food and energy, rose 0.3%. Grocery prices rose 0.4% and beef 0.9%. No yearly rate was published because the 2025 government shutdown left no October 2025 data. Separately, AAA says the national average gas price fell below $4 a gallon Tuesday for the first time in nearly four months. Economists say a Federal Reserve rate hike in December is now highly likely.
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Why it matters
Prices for groceries, beef, electricity and other everyday items kept rising in October. Economists say the hotter-than-expected report makes a Federal Reserve rate hike in December highly likely, which would affect borrowing costs. Gas prices have fallen in November, according to AAA.
What to watch
The Federal Reserve's next policy meeting is December 8–9.
Sources
- AP via WSVN: Inflation runs hotter than expected
- CBS News via Yahoo Finance: Inflation remained elevated in October
- ABC News: What to expect from the October inflation report
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