Inflation remained elevated in October, CPI report shows, upping odds of Fed interest rate hike

Updated on: November 10, 2026 / 10:51 AM EST / CBS News

Consumer prices rose more than economists expected in October on a monthly basis, offering little relief to Americans grappling with high living costs.

The Consumer Price Index, which tracks changes in prices over time, rose at a monthly pace of 0.4%, the Labor Department reported on Tuesday.

The Labor Department did not report a year-over-year inflation rate for October 2026 because the 2025 government shutdown left it without October 2025 consumer price data for comparison.

October's monthly inflation increase cooled from September, when headline inflation rose 0.6% on a monthly basis.

However, the figure was hotter than expected, with economists polled by FactSet predicting October prices would rise 0.3% month-over-month.

The October inflation data is one of the first snapshots of the economy following the midterm elections, which underscored Americans' frustration with high prices.

"Today's CPI report suggests underlying inflation remains more persistent than the Fed would like," Andrew Davis, head of investment strategy at Bryn Mawr Trust, said in an email. "While headline inflation moderated from September, core prices rose 0.3% for the third consecutive month, indicating that underlying price pressures have yet to meaningfully ease."

While…

Original source: https://www.cbsnews.com/moneywatch/