Inflation ran hotter than expected last month
The gist
US consumer prices rose 0.4% in October, a tenth of a point above forecasts, with core prices up 0.3%.
The report is the Fed's last CPI read before its Dec.
How it unfolded
- Sep 11, 2026August CPI rose 0.4% for the month and 3.4% over 12 months; annual core inflation cooled to 2.4% from July's 2.5%.
- Oct 14, 2026September CPI rose 0.6% from August, lifting the annual rate to 3.7% from 3.4%; core CPI rose 0.3% for the month and 2.6% year-over-year. Gas prices rose 9.1% and accounted for more than half of the monthly increase.
- Oct 14, 2026The S&P 500 fell more than 1% for the first time in 54 sessions after the hotter-than-expected September report; the 10-year yield topped 5.32% early before settling at 5.19%.
Key terms
- core prices
- A measure of inflation that strips out volatile items to show the underlying long-term price trend.
- CPI
- A statistical measure of the average change in prices paid by households for a basket of consumer goods and services.
- midterm elections
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
Source: Wikipedia