By — Christopher Rugaber, Associated Press Christopher Rugaber, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/economy/inflation-runs-hotter-than-expected-as-higher-prices-extend-beyond-the-gas-station Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter Inflation runs hotter than expected as higher prices extend beyond the gas station Economy Nov 10, 2026 12:59 PM EST WASHINGTON (AP) — U.S. inflation was higher than expected last month as the rising prices that powered sweeping Democratic victories in last week's midterm elections appear likely to pose ongoing challenges for the White House and the Federal Reserve. The consumer price index rose 0.4% from September to October, the Labor Department said Tuesday, down from 0.6% the previous month. The government did not report a yearly inflation rate because last year's government shutdown meant no data was released for October 2025. READ MORE: Voters demanded economic relief. Trump and Democrats face tough choices on how to deliver But excluding the volatile food and energy categories, core prices rose 0.3%, the same as the preceding month. Both figures were a tenth of a point higher than forecast, and at an annual…
Inflation runs hotter than expected as higher prices extend beyond the gas station
In short
Central bank officials face mounting pressure to implement another interest rate hike at their December meeting as consumer expenses broaden into utilities, groceries, and travel. Economic momentum from a 3.4% third-quarter expansion, compounded by tariffs and global turmoil, continues to keep price growth well above official targets. These relentless financial strains recently played a decisive role at the polls, directly shaping the outcome of the midterm elections. Specifically, electricity rates climbed 0.9% and grocery bills rose 0.4% over the month, compounding the burden of gas prices that sit over 37% higher than last year.
Key points
- Federal Reserve Governor Christopher Waller indicated that a half-point rate increase rem…: Federal Reserve Governor Christopher Waller indicated that a half-point rate increase remains an option for the December policy meeting.
- Strong third-quarter economic growth of 3.4% combined with tariffs and international turm…: Strong third-quarter economic growth of 3.4% combined with tariffs and international turmoil has helped sustain elevated costs.
- Voters citing the rising cost of living helped remove Republican majorities from both con…: Voters citing the rising cost of living helped remove Republican majorities from both congressional chambers in the midterm elections.