Consumer prices rose modestly but higher than expected in October, the government said Tuesday in its first inflation report following midterm elections that hinged on affordability.
The Bureau of Labor Statistics said the Consumer Price Index rose 0.4% during the month after jumping 0.6% in September. The number was slightly hotter than expected after Wall Street forecast a 0.3% increase.
The BLS said it couldn’t report an annual increase because a lapse in appropriations prevented it from recording an October 2025 index.
People were interested in these podcasts
Food prices rose 0.5% in October while energy costs increased 0.7% versus a 5.2% jump in September.
Core inflation, which excludes volatile food and energy prices, rose 0.3%, the same rate recorded in September and August, the BLS said.
The CPI measures what American consumers pay for common goods and services and will help the Federal Reserve decide whether to raise interest rates at its December meeting.
Central bankers raised rates in September but left them unchanged at their October meeting.
Forecasters say a December rate hike is probable. The labor market and other aspects of the economy remain strong, letting the Fed focus on tools to tame inflation.
Stocks fell after the inflation report and comments from Fed Governor Christopher Waller on Tuesday signaled a rate increase is likely.
“While the precise timing of the hikes doesn’t matter, ensuring that the promised hikes are implemented in a reasonable period of time does,” Mr. Waller said.
Inflation surged during the Biden administration and remains above the Fed’s 2% target rate under President Trump, whose Republican Party suffered a rout in midterm elections that focused on the high cost of living.
Heather Long, the chief economist at the Navy Federal Credit Union, said the latest report implied an annual inflation rate of 4% compared with wage gains of 3.1%.
“The October inflation report underscores why so many Americans voted the way they did in the midterm elections,” Ms. Long said on social media.
Democrats will face pressure to corral costs when they take control of Congress in January. They say Mr. Trump’s tariffs and war on Iran elevated prices, so they’re set to wrangle with the administration over both policies.
“Democrats are prepared to use their new majorities to fight for working families and deliver lower costs and an end to the Republican agenda that has made life unaffordable,” Democratic National Committee spokeswoman Kendall Witmer said in response to the inflation numbers.
Kevin Hassett, director of the White House National Economic Council, called Tuesday’s inflation report “disappointing.”
“Right now, the trickle-down from the higher energy prices is definitely very palpable in the data,” Mr. Hassett told Fox Business.
The Trump administration should see gradual improvement in the energy space, so long as the war does not flare up again. Gas prices are falling alongside a relative pause in Middle East fighting.
The average U.S. price of gas fell slightly below $4 per gallon on Tuesday, down from $4.37 a month ago but far above the $3.07 recorded at this time last year, according to the AAA motor club.
Contact the author
Please read our comment policy before commenting.