October inflation comes in hotter than expected, and the Fed may have another rate hike coming

The October CPI rose 0.4%, following September’s 0.6% increase. Core inflation, excluding food and energy, rose another 0.3%. Food prices climbed 0.5%, groceries rose 0.4%, and electricity prices increased 0.9%. The report offered little relief for households already dealing with higher living costs.

There’s an unusual wrinkle: the government cannot publish the normal 12-month inflation figures because it missed October 2025 data during the federal shutdown. So investors don’t even have the usual year-over-year comparison. Fed Governor Christopher Waller has been calling for tighter monetary policy, and traders are putting roughly 82% odds on a December rate hike. Oil falling below $90 helps, but the latest inflation report gives the Fed little reason to relax.

https://www.bls.gov/news.release/archives/cpi_11102026.htm

https://www.investing.com/news/economy-news/us-consumer-prices-rise-04-in-october-core-cpi-up-03-5014892

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