U.S. inflation came in higher than economists expected last month, the Labor Department said Tuesday, raising pressure on the White House and the Federal Reserve. The consumer price index rose 0.4% from September to October, down from a 0.6% gain the month before. Core prices, which exclude food and energy, rose 0.3%. Both figures were a tenth of a point above forecasts. The government did not publish a yearly rate because no data was collected for October 2025 during last year’s shutdown.
Economists said the pressure is spreading beyond the gas pump. Electricity rose 0.9% from September, the largest increase since April, and grocery prices climbed 0.4%. Restaurant prices rose 0.5%, the most since January 2024, as higher shipping costs were passed along. Air fares, public transportation and delivery services also increased. Computer prices jumped 0.5% as the cost of AI-related chips rose.
The Fed raised its key rate in September and held steady last month. Gov. Christopher Waller said Tuesday that a half-point increase at the December meeting was possible. Stock prices fell in early trading and Treasury yields rose on the news.
For South Florida households, the report points to costs that may not ease soon even as gas prices have dropped in recent weeks. The unemployment rate is 4.1%, but many Americans say they are still stretched by everyday bills.
