US Inflation Surges 0.4% in October, Fueling Fed Rate-Hike Concerns

Fresh inflation data released on November 10, 2026, by the U.S. Bureau of Labor Statistics (BLS) showed that consumer prices rose a hotter-than-expected 0.4% in October, exceeding economists’ forecast of 0.3%. Core CPI, which excludes volatile food and energy costs, climbed 0.3% for the third consecutive month, raising fresh alarms on Wall Street and in Washington.

Shelter costs were once again a major driver, accounting for more than 30% of the total monthly CPI increase. Other notable price changes included:

• Food prices: Up 0.5%, with grocery prices rebounding sharply.
• Beef: Up 0.9%.
• Baby food and formula: Up 5.1%, the largest monthly increase in nearly 30 years.
• Smartphones: Up 1.4%.

The report marks the third straight month of hotter-than-expected inflation, defying predictions that price pressures were easing. Inflation has now matched or outpaced wage growth for three consecutive months, leaving many workers with less purchasing power.

The stubborn data has reignited talk of a 50-basis-point rate hike at the Fed’s December 8–9 FOMC meeting, with money markets already beginning to price in the possibility. Fed Governor Waller said such a move “may be warranted” if core CPI came in around 0.3% or higher—a threshold that has now been met.

Source: CNBC – Consumer prices rose 0.4% in October, more than expected