Catenaa, Tuesday, November 10, 2026- US Inflation rose more than expected in October as oil prices stayed above $100, paving the way for a December rate hike.
According to the Bureau of Labor Statistics, the Consumer Price Index rose 0.4% in October, compared with expectations of 0.3%, marking a slight cooldown from September’s 0.6% gain.
Core inflation, which is the key inflation number for any interest rate adjustment, rose 0.3%, compared with expectations of 0.2% and unchanged from September.
According to The New York Times, Federal Reserve Governor Christopher Waller said in remarks on Tuesday that a half-point rate increase in December could be warranted if core inflation came in at 0.3% or higher. The Fed meets December 8-9.
“In that case, I believe a 50-basis point hike in the policy rate should be considered at the December meeting,” he said. “Hiking only 25 basis points would put our credibility at risk, a risk I am not eager to take.”
Gasoline rose 1.0% on a seasonally adjusted basis, though prices fell 0.7% before seasonal adjustment. The electricity index rose 0.9%, while the natural gas index fell 0.8%.
Used cars and trucks fell 1.2% in October after a 0.7% gain in September. The communication index fell 0.1%. Recreation rose 0.8%, motor vehicle insurance rose 0.7%, and medical care rose 0.3%.
Yahoo Finance reported that the Labor Department did not report a 12-month inflation rate for October—the measure of how much prices climbed over the past year —because of last fall’s government shutdown. Prices in October 2025 were never measured.
According to Yahoo Finance, Investors are now pricing in a nearly 100% chance that the Fed hikes rates next month.
