Inflation Remains Hot in October and Strengthens Case for Another Fed Rate Hike

Inflation accelerated faster than anticipated in October, driven by surging costs for housing and food, which will bolster the case for another Federal Reserve interest rate hike next month.On a monthly basis, overall prices rose 0.4%, according to the Consumer Price Index (CPI) data released released by the U.S. Bureau of Labor Statistics (BLS) on Tuesday. That's down from the 0.6% monthly increase recorded in September but higher than the 0.2% gain forecasted by economists. CPI measures the average costs consumers pay for a range of goods, including food, energy, commodities, and services.Core inflation, which strips out volatile food and energy categories, rose 0.3%, also exceeding the anticipated 0.2% increase. The BLS did not publish an official annual inflation rate because last year's government shutdown prevented the agency from collecting survey data for October 2025.October saw the index for shelter jump 0.3%, accounting for over 30% of the monthly all items increase. Meanwhile, the food index increased 0.5% and the energy index rose 0.7%, coming on the heels of a 5.2% surge in September. Prices for a wide range of goods and services, including recreation, medical care, v...