Prices rose faster than expected in October. That’s bad news for families already squeezed at the grocery store, and it’s another warning for a White House that just watched voters punish it over the cost of living.
The consumer price index rose 0.4% from September to October, the Bureau of Labor Statistics reported Tuesday morning. Economists surveyed by Dow Jones had expected 0.3%. That’s slower than September’s 0.6% jump, but it still beat forecasts, and it’s the opposite of the relief many Americans were hoping for.
The grocery bill keeps climbing
Food prices rose 0.5% in October after staying flat in September, CBS News reported. Beef was up 0.9% for the month, snacks rose 1%, and the broader category of meats, poultry, fish and eggs climbed 0.5%, according to CNBC’s breakdown of the report.
Housing costs kept rising too. Shelter was up 0.3%, and the BLS said it accounted for more than 30% of the overall increase. Transportation services jumped 0.8%, medical care commodities rose 0.5%, and airline fares rose 0.4%.
“Core” inflation beat forecasts too
Core prices, which leave out volatile food and energy, rose 0.3%. Forecasters had expected 0.2%. That matters because the Federal Reserve watches core inflation closely when it decides whether to raise interest rates.
After the release, traders fully priced in a quarter-point rate hike when the Fed meets Dec. 8-9, CNBC reported, and the odds of a bigger half-point hike rose to about 13.6% from near zero. Higher rates mean pricier mortgages, car loans and credit card debt.
Why there’s no yearly number
The government didn’t publish a year-over-year inflation rate this month. Last year’s government shutdown stopped the BLS from collecting enough October 2025 data, so there’s nothing to compare against. In September, annual inflation was 3.7%, Reuters reported, well above the Fed’s 2% target.
The war and tariffs
Reuters reported that the US-Israeli war with Iran has pushed up oil prices, and that together with the tariffs the Trump administration put in place last year, it has raised the cost of living. Energy prices rose 0.7% in October, much less than September’s 5.2% surge, according to CBS News. Gas is finally easing: AAA said the national average fell below $4 a gallon on Tuesday for the first time in nearly four months.
The Associated Press noted that the rising prices that powered sweeping Democratic victories in last week’s midterm elections will keep posing a challenge for the White House and the Federal Reserve.
The bottom line: a week after voters sent a message about affordability, the October numbers show prices are still running hot, especially on everyday groceries.