October Inflation Remained Elevated as CPI Report Shows Faster Monthly Rise
Prices rose faster than forecast
The Consumer Price Index increased 0.4% in October, the Labor Department said Tuesday. Economists surveyed by FactSet had expected a 0.3% monthly rise. The report provided no year-over-year inflation figure for October 2026. The 2025 government shutdown meant the department lacked October 2025 consumer price data for comparison.
Shelter led monthly increase
Shelter costs rose 0.3% in October and accounted for over 30% of the rise in the all-items index, the Labor Department reported. Energy prices increased 0.7%, a slower pace than September’s 5.2% gain. The article said energy costs had surged because of the Iran war, but contributed less to October’s inflation increase than in prior reports.
Gasoline prices eased
Gas prices had been declining for weeks as stations shifted to winter blend fuel and people reduced summer travel. AAA said the national average fell below $4 a gallon Tuesday for the first time in nearly four months. Global oil costs, a key influence on pump prices, had also declined amid hopes the midterm elections might help create an opening for a U.S.-Iran agreement to end the war.
A first post-election snapshot
The October figures are among the first views of the economy since the midterm elections. The vote highlighted Americans’ frustration with high prices.
Key points
- October CPI rose 0.4%, above the 0.3% forecast.
- Shelter accounted for more than 30% of the monthly all-items increase.
- No annual inflation rate was reported because October 2025 price data was unavailable.
- The national average gasoline price dropped below $4 per gallon, AAA said.