US inflation rose 0.4% in October as gasoline prices eased

Summarised from 5 outlets · Updated 10 Nov, 13:45 · Archive

US inflation rose 0.4% in October, slightly higher than forecast, as gasoline prices fell but energy costs remain elevated.

US inflation rose 0.4% in October, according to the Consumer Price Index released by the Bureau of Labor Statistics on Tuesday. This was higher than the 0.3% that economists polled by FactSet had forecast. The monthly increase in September was 0.6%.

Gasoline prices declined by more than 4% in October, according to the Energy Information Administration, providing relief to consumers at the pump. However, prices remained elevated, dropping from an average of $4.41 a gallon at the beginning of October to $4.22 a gallon, still more than a dollar per gallon higher than a year ago. The cost of diesel, used for trucks and farming equipment, is nearly $2.50 a gallon higher than a year earlier.

Energy costs, driven by the Iran war that began in late February, have been the main factor behind increased inflation. Inflation has been above 3% on an annualised basis since the war started, reaching a three-year high of 4.2% in May before fluctuating between 3.4% and 3.7%.

Federal Reserve officials are increasingly concerned that inflation pressures are proving harder to contain beyond energy sectors. Chicago Fed President Austan Goolsbee said on Monday that affordability and the cost of living are top concerns. 'We've got to come to terms with this cost-side and inflation-side failure,' he said.

The Bureau of Labor Statistics did not release a year-over-year inflation figure for October because the 2025 government shutdown meant October 2025 consumer price data was not collected for comparison.

The inflation report comes after the midterm elections, which were largely seen as a rebuke of the Republican party over high prices. Republicans, including JD Vance, have pointed to frustration over increased gasoline prices as a factor in their poor performance.

How it is being reported

• Inflation hotter than expected in October — adding to Fed’s case for rate hikeTraders are betting on near-certain odds of a quarter-point rate hike at the Fed’s Dec. 9 meeting.New York Post · 10 Nov, 13:49
• Monthly US inflation eased less than expected in OctoberStronger than expected figure of 0.4% comes as last year’s government shutdown prevented data collectionFinancial Times · 10 Nov, 13:40
• Inflation remained elevated in October, CPI report showsInflation rose at a monthly pace of 0.4%, hotter than economists had forecast.CBS News · 10 Nov, 13:37
• US inflation rose 0.4% in October as price increases cooled and gas costs dippedNew data comes after Republicans’ midterms losses – which were largely seen as a rebuke of the party over high prices US inflation rose 0.4% from September to October, a cooldown in price increases as the cost of gas dipped during the month. The Bureau of Labor Statistics did not release the usual year-over-year inflation figure as part of the consumer price index (CPI), which measures the price of a basket of goods and services, as data was not collected in October 2025 during the government shutdown. Continue reading...Guardian World · 10 Nov, 13:36
• A key report for where inflation stood in October comes out Tuesday. Here's what to expectThe CPI headline reading is expected to show an increase of 0.3% while the core is forecast to increase 0.2%.CNBC · 9 Nov, 21:03

In this story: Bureau of Labor Statistics · Federal Reserve · Austan Goolsbee · Chicago Fed · Energy Information Administration · United States

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