US October inflation rises 0.4%, above forecasts, as Fed weighs December hike
The gist
US consumer prices rose 0.4% in October, above the 0.3% economists expected, with core prices up 0.3%.
The report keeps a December Fed rate increase in play.
How it unfolded
- Dec 8, 2025 -9, 2026The Fed's final meeting of the year is scheduled, with November's CPI report due the day after.
- late Oct 2026The Fed voted to hold rates steady at a range of 3.75% to 4%, days before the midterms.
- Sep 2026CPI rose 0.6% for the month, the largest gain since April, as gasoline prices jumped 9.1%; the Fed raised rates by a quarter of a percentage point.
Key terms
- core prices
- A measure of inflation that strips out volatile items to show the underlying long-term price trend.
- Fed
- The central banking system of the United States, created in 1913 to provide a stable monetary system.
- 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