Consumer prices in the United States increased more than expected in October 2026, according to data released Tuesday by the US Department of Labor, although the monthly pace of inflation slowed compared with September.
The consumer price index (CPI) rose 0.4% in October, following a 0.6% increase in September. Economists had forecast a smaller monthly increase of 0.3%.
The report also showed that core consumer prices, which exclude food and energy, increased 0.3% for the third consecutive month, exceeding expectations for a 0.2% rise.
Headline Inflation Slows but Remains Above Expectations
The Labor Department reported that the CPI increased 0.4% in October, representing a slowdown of 0.2 percentage points from September’s 0.6% increase.
Despite the moderation, the October reading exceeded economists’ forecasts by 0.1 percentage points.
The figures indicate that consumer prices continued to increase during the month, although at a slower rate than in September.
The CPI measures changes in the prices paid by consumers for a range of goods and services and is a key indicator used to assess inflation in the US economy.
The higher-than-expected reading provides updated information on monthly price pressures.
Core Consumer Prices Increase 0.3% for Third Consecutive Month
Core inflation, which excludes food and energy prices, rose 0.3% in October.
The increase matched the monthly readings recorded in August and September, marking three consecutive months of 0.3% growth.
Economists had anticipated a smaller increase of 0.2%.
The October result therefore exceeded expectations by 0.1 percentage points.
Core inflation is monitored separately from headline inflation because excluding food and energy prices can help identify underlying trends in consumer price movements.
The latest figures show that the monthly pace of core inflation remained unchanged from the previous two months.
Government Shutdown Prevents Publication of Annual Inflation Rate
The Labor Department said it was unable to provide the annual rate of consumer price inflation because of the federal government shutdown in October 2025.
The disruption prevented the agency from reporting the year-over-year comparison for October 2026.
As a result, the report provides monthly changes in headline and core consumer prices but does not include the corresponding annual inflation rate.
The absence of annual figures limits direct comparisons with consumer price levels during the same month of the previous year.
The Labor Department did not provide an alternative annual inflation estimate in the information released.
Implications for the Inflation Outlook
The October CPI report showed that headline inflation moderated from September while both headline and core monthly readings exceeded economists’ expectations.
The 0.4% increase in overall consumer prices was below September’s 0.6% rise, while the 0.3% increase in core prices matched the pace recorded during the previous two months.
The figures provide additional information about current inflation trends, although the absence of annual data limits the scope of year-over-year analysis.
Future inflation reports will provide further evidence of whether monthly price increases continue at similar rates or begin to moderate.