U.S. Inflation Slows to 0.4% in October as White House Sticks to Economic Policies
Key Facts
The U.S. Consumer Price Index for All Urban Consumers rose 0.4% month over month on a seasonally adjusted basis in October 2026, following a 0.6% increase in September, according to data published by the Bureau of Labor Statistics on November 10. On the same day, White House economic adviser Kevin Hassett said the administration saw no need to change its economic policies after Republicans lost the midterm elections. “I don’t think there’s a policy change that we need to be planning for,” he said in a television interview. The remarks came as October’s data put the path of prices and the cost of living at the center of the economic debate. The report did not include an annual inflation rate for October.
A poll conducted by The Associated Press among midterm election voters found that about two-thirds of respondents blamed President Donald Trump’s policies for rising costs. About 9 in 10 said the cost of living was a “decisive” or “major” factor in their vote. That provides direct context for Hassett’s remarks on maintaining the economic approach, as prices emerged among the issues surrounding the election. The government did not publish an annual inflation rate for October because the previous year’s government shutdown prevented the collection of October 2025 data. The available release therefore focuses on monthly changes and the components of the price basket.
The unadjusted index level for the Consumer Price Index for All Urban Consumers stood at 337.511 in October, based on 1982–84=100. The index for all items less food and energy rose 0.3% in October, the same monthly increase recorded in both August and September. The core index showed a relatively steady reading over the three months, while the headline index moved from a 0.6% increase in September to 0.4% in October. The unadjusted index level does not measure the same monthly change reflected in seasonally adjusted rates. Food, shelter and energy were among the leading contributions detailed in the release.
The shelter index rose 0.3% in October and accounted for more than 30% of the monthly increase in the all-items index, according to the Bureau of Labor Statistics. The food index also rose 0.5%, with food purchased for consumption at home up 0.4% and food away from home up 0.5%. The energy index increased 0.7% in October, following a larger 5.2% rise in September. The comparison shows that the monthly increase in energy moderated from the previous month, while shelter remained a significant factor in the movement of the all-items index. The agency said gasoline prices rose 1% from September to October and were more than 37% above their level a year earlier.
The White House defended the use of tariffs as a tool to restore manufacturing and protect supply chains. In a statement, it said new and improved trade agreements with key trading partners, secured using tariffs as leverage, covered more than half of global gross domestic product as of November 2, 2026. Before the midterm elections, the White House said the manufacturing sector added 19,000 jobs in October, calling it the strongest monthly gain since 2023. These figures set out the administration’s case for its trade and industrial policies amid debate over the cost of living. They are separate data and positions from the Bureau of Labor Statistics’ reading of October consumer prices.
Near-term attention turns to the October Producer Price Index, scheduled for release on November 13 at 8:30 a.m. Eastern time, according to the Bureau of Labor Statistics’ calendar. The report follows the release of consumer price data and will provide a reading of the producer price index for the same month. The release calendar did not include a documented forecast, so no estimate is listed here. The next consumer price report, for November, is scheduled for publication on December 10, 2026, at 8:30 a.m. Eastern time. On monetary policy, an Associated Press report pointed to the possibility that the Federal Reserve would raise its key interest rate at its next meeting in December because inflation remained elevated; the Fed had held rates steady in late October after raising them in September.