U.S. CPI Tops Forecasts at 0.4% in October as Housing, Energy Keep Inflation Hot
Updated
Updated · CNBC · Nov 10
U.S. CPI Tops Forecasts at 0.4% in October as Housing, Energy Keep Inflation Hot
3 articles · Updated · CNBC · Nov 10
Summary
U.S. consumer prices rose 0.4% in October, slowing from September’s 0.6% but beating the 0.3% economists expected; core CPI held at 0.3% for a third straight month.
Housing drove more than 30% of the monthly increase, with shelter up 0.3%, while gasoline rose 1% after September’s 9.1% jump and food prices accelerated 0.5%.
Economists also cited tariff pass-through in goods such as toys, furniture and appliances, plus AI-related demand that is lifting electricity and consumer electronics prices.
Diesel and jet-fuel costs from the Iran war are still feeding through transportation, groceries and airfares, suggesting inflation pressure could persist for another three to six months.
The hotter-than-expected report strengthens the case for a Federal Reserve rate increase in December, even without a year-over-year CPI figure because the 2025 government shutdown disrupted comparisons.