US Inflation Rises 0.4% in October; Core Holds at 0.3% for Third Month
Key Facts
The US Consumer Price Index rose 0.4% month over month in October, after a 0.6% increase in September, while the core index, which excludes food and energy, climbed 0.3% for the third consecutive month. The report was released by the Bureau of Labor Statistics on November 10, 2026, at 8:30 a.m. Eastern time. The Associated Press said increases in both headline and core inflation exceeded economists’ forecasts by one-tenth of a percentage point. The core reading, which measures price pressures apart from food and energy, kept the monthly pace of increase steady at the level recorded in August and September. The figures came as investors watched the outlook for US interest rates ahead of the Federal Reserve’s December meeting.
The monthly increase was spread across several major components: the food index rose 0.5% in October, while the energy index climbed 0.7% after a 5.2% increase in September. The housing index rose 0.3% during the month and accounted for more than 30% of the increase in the headline index. These components show that housing remained a prominent contributor to rising prices, while the monthly increase in energy slowed from the previous month. Core inflation, meanwhile, held at the 0.3% increase recorded in both September and August. The result was a slower headline reading than in September alongside an unchanged monthly pace of core inflation.
October’s report did not include the annual inflation rate, according to the Associated Press, after last year’s government shutdown prevented price data for that month in 2025 from being collected. The absence of an annual comparison means the monthly figures provide the available basis for comparison in this release. On that basis, headline inflation slowed from a 0.6% increase in September to 0.4% in October, while core inflation remained at 0.3% for the third month. The Associated Press noted that persistent price pressures were linked to strong consumer and business spending, as well as higher gasoline prices and supply disruptions associated with tariffs and global turmoil. These factors put the monthly component readings in the context of broader price pressures, without the report providing an annual rate of change for this release.
Before the report was released, Federal Reserve Governor Christopher Waller said that a major measure of core inflation coming in at 0.3% for September would prompt him to consider a half-percentage-point interest-rate increase at the December meeting. The Associated Press reported that continued high inflation makes it likely the Fed will raise its benchmark interest rate at its next meeting. The Federal Reserve’s next meeting is scheduled for December 8 and 9, 2026. This follows the yield on 10-year US Treasury notes rising above 5.30% in early October before retreating amid concerns about inflation, higher interest rates and government debt. Waller’s comments and the Fed’s anticipated stance provide the backdrop to October’s reading, while inflation data remain a focus in assessing the monetary policy outlook ahead of the meeting.
EL7 data for the core Consumer Price Index show an actual reading of 339.9 in the November 10 release, compared with a previous reading of 338.9. The next item on the official data calendar is the October Producer Price Index, which the Bureau of Labor Statistics has scheduled for release on November 13, 2026, at 8:30 a.m. Eastern time. The release follows the Consumer Price Index report and provides a subsequent reading for tracking price pressures at the producer level. No documented forecast for the monthly change in the Producer Price Index was available in the information provided. Attention then turns to the Federal Reserve meeting scheduled for December, where policymakers assess price data as part of their interest-rate decisions.