October Inflation Spurs Debate Over Fed Hike

U.S. consumer prices rose 0.4% in October, down from September’s 0.6% increase but above economists’ 0.3% forecast; core inflation rose 0.3%, also above expectations. Food and shelter costs climbed, while energy inflation cooled from the previous month. The Labor Department did not publish year-over-year inflation figures because the 2025 government shutdown prevented collection of comparable October data. The report strengthened expectations of a Federal Reserve rate increase in December, and Governor Christopher Waller said a half-point hike should be considered if core inflation reached 0.3% or higher.