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US consumer prices rise 0.4% in October, more than economists expected

The Labor Department gave no yearly rate because of the 2025 shutdown, and analysts expect the Fed to raise interest rates in December.

27 news outlets reported this
Liberal11 outletsHotter inflation raising pressure on the FedCenter8 outletsHotter-than-expected prices, explained against midterms and Fed outlookConservative8 outletsInflation threat, voter anger, likely Fed hike
ABRAnews EditorialPublished 1 min readMoney and daily life
Overview

US consumer prices rose 0.4% in October from the month before, the Bureau of Labor Statistics reported on Tuesday, Nov. 10. Economists had expected a smaller rise of 0.3%. Core prices, which leave out food and energy, also came in above forecasts.

The bureau gave no yearly rate. The last year left it without October 2025 data to compare against. Energy prices rose much more slowly than in September.

Shelter costs rose and, the bureau said, accounted for more than 30% of the monthly increase. Food prices also went up. The report is the first since the elections, in which Democrats won both and the .

It follows a jobs report showing the economy added far more jobs than forecast in October. The held its benchmark rate at its October meeting and meets again in December. Analysts and traders expect a rate increase.

Fed Governor Christopher Waller, speaking in London before the release, said a hot inflation report could push him toward a half-point increase.

Key figures
  • 0.4%monthly rise in consumer prices in OctoberCNBC
  • 0.3%increase economists surveyed by Dow Jones had forecastCNBC
  • 0.3%monthly rise in core prices, against a 0.2% forecastYahoo News
  • 0.7%monthly rise in the energy index, after 5.2% in SeptemberCBS News
  • 3.7%inflation for the 12 months to September, per BBCBBC News

Three sides of the story

11Liberal8Center8Conservative

27 news outlets reported this

Tap a color or swipe sideways to switch sides.

Liberal11 outlets

Hotter inflation raising pressure on the Fed

CNBC leads with the report as "fresh warning signs" for the Federal Reserve and quotes Karen Manna of Federated Hermes: "This was the report the market could least afford to see." CBS News says prices offered "little relief to Americans grappling with high living costs," ties the data to voter frustration in the midterms, and quotes analysts at Bryn Mawr Trust, Vanguard and Edward Jones. It also carries Waller's warning that a quarter-point move "would put our credibility at risk."

Yahoo News headlines inflation as hotter than expected "even as energy inflation fades," lists rises in food, rent and medical care, and quotes economist Justin Wolfers and Schwab's Kevin Gordon, who calls the report "not great." La Opinión opens with grocery, gasoline and rent bills, and notes gasoline fell 0.7% before seasonal adjustment but rose 1.0% after it.

Center8 outlets

Hotter-than-expected prices, explained against midterms and Fed outlook

BBC News builds an explainer around "here's what is happening with prices." It defines inflation, puts energy at 0.7% against 5.2% in September, gives 3.7% for the 12 months to September, and adds New York Fed research on and the 3.6% increase due in 2027. Newsweek ties the report to the midterms, in which Democrats won the House and Senate "in large part due to inflationary concerns," and to the jobs report showing 165,000 jobs added.

It quotes Capital.com analyst Daniela Hathorn on whether the figures support the recovery. The Hill headlines that prices rose "slightly" and notes the shutdown blocked a comparison with October 2025. NewsNation says inflation "ran hotter than expected," citing the Labor Department.

Conservative8 outlets

Inflation threat, voter anger, likely Fed hike

Washington Examiner headlines a "sharp" 0.4% rise "showing inflation threat" and calls the report the first since Democrats "swept" the midterms. It quotes Chris Rupkey of FWDBONDS: "Inflation isn't dead, it is very much alive."

It adds that surveys show many voters blame Trump, and recounts the September hike by a Fed led by Trump's pick, Kevin Warsh, and the October hold. New York Post leads with inflation "hotter than expected" as energy costs rise amid the Iran war, "teeing up" a Fed hike, and cites CME odds above 98% for a quarter-point move. Just the News headlines an "annualized rate" and sets out BLS figures on shelter, food and energy.

The Washington Times says prices rose "modestly but higher than expected" in a report after midterms that "hinged on affordability."

Where outlets disagree
  • Day Fed Governor Waller spoke in London
Money and daily life

Edward Jones economist James McCann told CBS News the report "most likely seals the deal on a rate hike" in December, with a quarter or half point still open. Karen Manna of Federated Hermes told CNBC it raises the risk that rates move "higher and stay there for longer." CME's FedWatch tool showed an 85% chance of a quarter-point hike, CBS News reports.

All sources: 40 articles from 27 outlets

Liberal (17)

Center (12)

Conservative (11)

Related
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  3. NBC poll ranks economy as top midterm issue as inflation outpaces wages
  4. US consumer prices rise 0.4% in October, more than economists expectedThis story
  5. Fed officials debate faster rate hikes as markets bet on a December increase
Inflation and the CPI

How fast prices rise. In the US it is measured by the consumer price index, published monthly for a basket of goods and services. “Core” inflation leaves out food and energy, whose prices swing the most.

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Government shutdown

When Congress fails to pass funding in time, part of the federal government stops: some employees stay home, others work without pay until the money is approved.

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Midterm elections

US elections halfway through a president's four-year term. The whole House, a third of the Senate and many governors are elected. In 2026 Election Day was November 3.

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House of Representatives

The lower chamber of Congress: 435 members elected every two years, with more seats for bigger states. It is the chamber that can impeach officials.

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Senate

The upper chamber of Congress: 100 senators, two per state, elected for six years. It confirms judges and ministers and approves treaties.

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Federal Reserve (the Fed)

The central bank of the United States. It sets the key interest rate, which moves the rates on loans, mortgages and savings.

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Tariff

A tax on imported goods, paid at the border by the importer, who usually passes some or all of it into prices. Governments use tariffs to protect their producers or to press the other side in a trade dispute.

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Social Security

The federal program of retirement and disability benefits, paid for by a tax on wages.

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