U.S. inflation rises 0.4% in October as energy cools from September’s jump
Key Facts
The seasonally adjusted U.S. Consumer Price Index rose 0.4% in October 2026, after increasing 0.6% in September, according to the U.S. Bureau of Labor Statistics. The reading shows a slower monthly rise in overall inflation than in the previous month, while underlying prices continued to increase at the same pace. The index for all items less food and energy rose 0.3% in October, the same rate recorded in September and August. Thus, the overall index’s slower pace coincided with a steady core reading, as increases in energy and gasoline eased from their September jumps. The bureau said, "The all items index increased 0.4% on a seasonally adjusted basis in October, after rising 0.6% in September."
Shelter remained a major contributor to the monthly increase, with its index rising 0.3% and accounting for more than 30% of the rise in the all items index, according to the bureau’s statement. The food index also rose 0.5% in October, with food at home up 0.4% and food away from home up 0.5%. On the energy side, the index’s increase slowed to 0.7% after a 5.2% rise in September. The gasoline index rose 1.0% in October, compared with an increase of 9.1% in the previous month. The monthly comparison highlights differing sources of pressure: food and shelter increases continued, while energy and gasoline rose more slowly than in September.
Among core price movements, the recreation index rose 0.8% in October, motor vehicle insurance increased 0.7%, and medical care rose 0.3%, according to the Bureau of Labor Statistics. By contrast, the index for used cars and trucks fell 1.2% during the month. These components were part of a core reading that rose 0.3%, the same pace for a third consecutive month, following August and September. The figures show variation between services and goods, with some indexes posting monthly increases while the used vehicle index declined. The bureau did not report October year-over-year rates in its statement for indexes that could not be calculated without comparison data.
The Bureau of Labor Statistics did not collect survey data for October 2025 because of a lapse in appropriations, and said levels for that month were unavailable for most Consumer Price Indexes. As a result, 12-month changes in October 2026 could not be published for the affected indexes. In the latest annual comparison available in the data presented here, the overall index rose 3.7% in the 12 months through September 2026, before seasonal adjustment. The gasoline index had risen 9.1% in September, contributing more than half of the overall index’s monthly increase at the time, according to the bureau’s statement for that month. September’s reading provides context for October’s slower increase in energy and gasoline, but it is not October’s annual inflation rate.
At its October 28 decision, the Federal Reserve kept its target interest rate range at 3.75% to 4%, saying inflation "remains elevated." The Fed added that the accumulation of more information would help the committee determine the appropriate stance of policy to ensure a timely return to its 2% inflation goal. Lisa Cook and Beth Hammack dissented from the decision to hold rates steady, preferring a quarter-percentage-point increase in the target range at that meeting. October’s data came after the decision, while the official annual comparison for some indexes remains unavailable, according to the bureau. The Associated Press reported that U.S. markets fell immediately after the inflation report was released, while Treasury yields rose.
The Consumer Price Index for All Urban Consumers, before seasonal adjustment, stood at 337.511 in October 2026, up 0.2% during the month, according to the bureau. That change differs from the seasonally adjusted monthly increase of 0.4%, as the statement presents the two figures on different bases. Against the backdrop of energy price pressures, the Associated Press noted that higher prices were beginning to feed into other services, including airfares, public transportation and delivery services, all of which saw price spikes. The Bureau of Labor Statistics is scheduled to publish its November Consumer Price Index report on December 10, 2026, at 8:30 a.m. Eastern time. That will be the bureau’s next release after the October report.