Prices post slowest rise in three months as gas costs drop

Prices rose 0.4% in October, after the rising cost of gas eased throughout the month, bringing some relief to consumers who have been hammered by high prices for most of the year.

In September, prices had jumped by 0.6% from August, meaning the pace of inflation cooled last month, but nonetheless remains too elevated for comfort.

Core inflation, which excludes food and energy prices, rose 0.3% from September for the third straight month. A higher-than-expected core reading indicates that soaring energy prices could be spilling over into the broader economy.

Both readings from the Bureau of Labor Statistics were more than economists had widely expected.

Tuesday’s report contains no year-ago figures due to the government shutdown in October 2025, which forced the BLS to cancel that month’s inflation report.

The slightly slowing pace of inflation was largely the result of easing gas prices last month, which according to AAA’s average, fell from $4.41 per gallon on Oct. 1 to $4.18 by the end of the month, a more than 5% drop.

But the BLS’ report showed that the overall gas price index still rose a solid 1%, even as the average nationwide price for a gallon of unleaded fell. Fuel…

Original source: https://www.nbcnews.com/business