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# U.S. Consumer Prices Rise More Than Expected in October
- URL: https://www.theamericanquorum.com/us-consumer-prices-rise-more-than-expected-in-october/
- Published: 2026-11-10T16:00:24.000Z
- Updated: 2026-11-10T16:00:24.000Z
- Description: U.S. prices rose 0.4% in October as housing, groceries and electricity got more expensive. The federal shutdown last fall left the government without the data needed to calculate a broad year-over-year inflation rate.
- Author: News Desk
- Tags: Business

U.S. consumer prices rose 0.4 percent in October, a smaller increase than in September but larger than economists expected, the [Labor Department](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com) reported Tuesday. Prices excluding food and energy rose 0.3 percent for a third consecutive month. The report omitted the usual year-over-year figure because last fall’s federal shutdown prevented the government from collecting most of the price data needed for that comparison.

The monthly figures offered little evidence that underlying price increases were easing. Overall inflation slowed from 0.6 percent in September as the rise in energy prices moderated, but the cost of shelter continued to climb and groceries turned higher. Economists polled by [Reuters](https://www.investing.com/news/economic-indicators/hot-october-inflation-report-rattles-markets-5015775?ref=theamericanquorum.com) had expected a 0.3 percent increase overall and a 0.2 percent increase in the index excluding food and energy. The two readings each exceeded those forecasts by a tenth of a percentage point.

## Housing and food kept prices rising

Shelter costs rose 0.3 percent in October and accounted for more than 30 percent of the overall monthly increase, according to the [price report](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com). The index for rents paid by tenants rose 0.2 percent. The measure of what owner-occupied homes would rent for rose 0.3 percent. The latter is meant to measure the cost of housing services; it does not track home sale prices or mortgage payments.

Grocery prices rose 0.4 percent after falling 0.1 percent in September. Four of the six major grocery categories posted increases, including fruits and vegetables and dairy products. Eating out also grew more expensive. The [Associated Press](https://apnews.com/article/consumer-prices-holiday-inflation-tariffs-trump-fcd3c7766d3cdb36057f6dab19ff3a8e?ref=theamericanquorum.com) reported that the rise in grocery and electricity prices was adding to the costs households face heading into the holidays, even as some prices moved in the opposite direction. Used vehicles, for example, fell 1.2 percent in October after rising in September.

## Energy prices rose more slowly

The [energy index](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com) increased 0.7 percent after jumping 5.2 percent in September. Gasoline rose 1 percent on a seasonally adjusted basis, compared with 9.1 percent the previous month. Electricity prices rose 0.9 percent, while prices for piped natural gas fell 0.8 percent. That mix helps explain why a slowdown in overall energy inflation can coexist with noticeably higher costs on some utility bills.

Before seasonal adjustment, gasoline prices fell 0.7 percent from September to October. The adjusted and unadjusted numbers answer different questions: the first accounts for typical seasonal movements so economists can compare months, while the second records the change before that adjustment. The [same report](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com) also showed gasoline was 37.4 percent more expensive than a year earlier on an unadjusted basis. That annual figure is available for gasoline even though the broad index lacks an October-to-October comparison.

## Why the annual inflation rate is missing

During the 2025 funding lapse, the Bureau of Labor Statistics could not collect its October survey prices. It could recover some data for categories that rely on sources outside those surveys, according to its [shutdown explanation](https://www.bls.gov/cpi/additional-resources/2025-federal-government-shutdown-impact-cpi-faq.htm?ref=theamericanquorum.com). For most indexes, however, there is no published October 2025 level to use as a denominator. The bureau therefore left the annual change blank for the overall index and the measure excluding food and energy.

The gap does not prevent a comparison between September and October of this year, when the bureau has data for both months. It does mean the 0.4 percent headline figure cannot tell readers how much more the overall basket costs than it did in October 2025\. Annualizing October’s increase would show the pace if that month’s change repeated, rather than measure what happened over the past year. The [bureau’s tables](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com) separate those monthly and annual columns.

The distinction also matters for households comparing the report with their own bills. The [technical notes](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com) explain that the index follows spending patterns for urban consumers, a group that represents more than 90 percent of the U.S. population. The national figure weights categories according to spending across that population. A household that spends a larger share of its budget on rent, food or fuel can experience a different change in costs, even when the national measure is accurately capturing the average.

## What the report means for the Fed

Before the release, Federal Reserve Governor Christopher Waller [said Tuesday](https://www.federalreserve.gov/newsevents/speech/waller20261110a.htm) he was leaning toward supporting a quarter-point rate increase in December. He said policymakers should consider a half-point increase if monthly core inflation came in around 0.3 percent or higher. Tuesday’s release matched the level he identified. Waller was describing his own policy view; the full rate-setting committee has yet to decide.

The Fed’s [2 percent](https://www.federalreserve.gov/faqs/economy%5F14400.htm) longer-run inflation goal is based on the annual personal consumption expenditures price index, a different measure. October’s monthly CPI cannot be compared directly with that target. The Fed’s [meeting calendar](https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm) lists its next meeting for Dec. 8 and 9, and the [statistics bureau](https://www.bls.gov/news.release/archives/cpi%5F11102026.htm?ref=theamericanquorum.com) has scheduled the November CPI release for Dec. 10\. That leaves October as the latest scheduled CPI reading before the decision, even though policymakers can consider other data in the meantime.