US inflation rose 0.4% in October, according to the Bureau of Labor Statistics and the US Labor Department. This follows a 0.6% increase in September. While the monthly pace was hotter than the 0.3% increase economists had forecast, it represented a cooldown in price increases.
The increase was driven by rising costs for food, shelter, and energy. Falling gas prices contributed to the slower increase and brought some relief to consumers who have been hammered by high prices for most of the year, though food costs picked up.
The Consumer Price Index report showed a broadening of price pressures, stoking concerns about the Federal Reserve's grip on inflation. This firm advance comes at a critical juncture and likely keeps the Federal Reserve on track to raise interest rates next month.
The data follows Republican midterm losses that were largely seen as a rebuke of the party over high prices. The Bureau of Labor Statistics did not release the usual year-over-year inflation figure as part of the report, as data was not collected in October 2025 during the government shutdown.